ASML Faces Employee Backlash Over Job Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ASML?
Source: seekingalpha
- Mass Walkout: Over 1,000 ASML employees staged a mass walkout at the Veldhoven headquarters, protesting the proposed elimination of 1,700 positions, which represents nearly 4% of the company's global workforce, indicating significant internal dissent against the restructuring initiative.
- Restructuring Context: The job cuts were first announced in January as part of a broader strategic plan to eliminate 3,000 middle-management roles, which ASML argues is necessary to streamline bureaucracy and refocus engineering teams on innovation.
- Union Opposition: FNV Union representative Peter Reniers urged ASML management to reconsider the layoffs, emphasizing the company's strong financial position with projected profits of €9.6 billion in 2025, suggesting that reorganization could occur without job losses.
- Future Plans: ASML acknowledged employee concerns and stated it would continue with its reorganization plans, which include retraining and severance packages, with unions set to respond to the proposed social plan on April 7 and the works council providing formal advice in May.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1302.470
Low
1385
Averages
1583
High
1911
Current: 1302.470
Low
1385
Averages
1583
High
1911
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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