THE HAGUE, Netherlands (AP) — ASML Holding NV, the Dutch semiconductor chip machine manufacturer, announced a record net profit of 9.6 billion euros (approximately $11.5 billion) for the year 2025, alongside sales reaching 32.7 billion euros. This remarkable financial performance has been driven significantly by increased demand for AI technologies, as the company shared in its report released on Wednesday. However, ASML also disclosed plans to reduce its workforce by around 1,700 employees, representing about 4% of its total workforce, as part of its strategy to streamline operations.
The growth in ASML’s profit and sales comes despite the imposition of export restrictions by the Dutch government. These restrictions limit the sale of machines that can produce chips capable of being integrated into weapons systems. The measures were first revealed in 2023 and later expanded, aligning with a broader U.S. policy aimed at curtailing China’s access to advanced semiconductor technology.
ASML's President and CEO, Christophe Fouquet, noted in a statement that many of the company’s clients have expressed a more optimistic outlook regarding the medium-term market conditions. This optimistic view is primarily based on enhanced expectations surrounding the sustainability of demand driven by AI. Consequently, this sentiment is reflected in a significant increase in ASML's medium-term capacity plans and a record intake of orders.
In an internal communication to employees, ASML explained that the decision to reduce its workforce was a strategic move to become more streamlined and efficient. The company emphasized that it is making these changes at a time of strength, asserting that enhancements in their processes and systems will enable improved innovation, ultimately fostering responsible growth for ASML and its stakeholders.
The layoffs are specifically aimed at refining ASML's focus on engineering and innovation, with the intention of streamlining the technology and IT sectors within the company. This restructuring effort showcases ASML's commitment to maintaining a competitive edge in a rapidly evolving tech landscape.
Looking ahead, the company anticipates that 2026 will continue to be a growth year, largely driven by sales of its cutting-edge extreme ultraviolet lithography systems. This optimism indicates ASML's ongoing role as a pivotal player in the semiconductor industry, even amidst the challenges posed by governmental trade restrictions.
In summary, ASML's strong financial performance and proactive strategies to streamline operations underscore its commitment to meeting the increasing demands of the semiconductor market while navigating geopolitical complexities.
