ASML, the leading chip machine manufacturer based in Veldhoven, has reported unprecedented success over the past year, signaling a record performance. The company anticipates an even more prosperous year ahead. However, it faces substantial workforce reductions, planning to cut approximately 1,700 jobs primarily in the Netherlands. This announcement coincided with the release of its 2025 annual financial results.
Financial Highlights from ASML’s Year-End Report
In 2025, ASML achieved a net profit of €9.6 billion on revenues of €32.7 billion. The firm projects continued growth for the coming year, estimating revenues between €34 billion and €39 billion. Such optimism is largely attributed to a robust order backlog.
Robust Order Intake
During the last quarter of the previous year, ASML secured orders exceeding €13 billion. This figure nearly doubles the order volume from the same period in 2024. The rise in orders reflects high market expectations surrounding artificial intelligence. However, due to a lead time of one to one and a half years for delivery, these orders will not immediately contribute to revenues.
Organizational Changes and Job Cuts
ASML plans to undertake significant organizational changes to fuel further growth and innovation. The management indicated that the modifications are necessary to streamline technology and IT operations, allowing engineers to focus on technological advancements without being hindered by slow processes. ASML aims to restore the dynamic culture that has greatly contributed to its success.
- Proposed job cuts: 1,700 positions
- Current workforce: 43,520 full-time employees
- Projected revenue increase: €34 billion to €39 billion in 2026
- Record orders in 2025: €28 billion
Impact on the Dutch Economy
ASML stands as one of Europe’s largest corporations and plays a pivotal role in the Dutch economy. The company’s robust financial health not only supports its operations but also fosters opportunities for other businesses and employment in the region. Shareholders will benefit from a significant dividend payout of €7.5 per share, alongside a planned repurchase of €1.7 billion in shares. This strategy will reduce the number of shareholders, enhancing future dividend distributions.
In closing, ASML’s commitment to innovation and its proactive organizational restructuring aims to ensure continued success in the competitive chip manufacturing industry. As the company moves forward, it emphasizes the importance of efficiency and innovation to foster sustainable growth for all stakeholders involved.
