ASML is cutting costs and making cuts. Less travel and training, no new sponsorship and restrictions on hiring staff. ASML is engaged in a major cutback program. Profitability is under pressure.
It reports that Eindhovens Dagblad. For years it seemed that the trees for chip machine builder ASML were growing to the sky, but appearances can be deceiving. ASML is not only focused on the enormous growth in the coming years. The Veldhoven chip machine manufacturer wants to cut costs significantly this year.
Transition year
ASML previously announced that 2024 will be a transition year, with approximately the same turnover as in 2023. Sources around the company have made it clear in recent weeks that ASML is cutting costs. The profits made on chip machines are under pressure. The belt is being tightened considerably, say those involved. They speak of a ‘heavy cost savings program’.
Employees are allowed to travel less, according to internal communications. Flying business class is taboo for senior management. Visits to suppliers and conferences are limited. Expenses for training and education are also being cut. Expensive (foreign) training must be postponed.
Invest a lot
A spokeswoman for ASML, who confirms reporting from the Eindhovens Dagblad, explains that 2024 is a transition year. Next year, the maker of advanced machines for semiconductor production expects to grow rapidly, which will initially cost a lot of money. “We now have to invest a lot to prepare for that growth.”
The pace at which ASML hired new staff is therefore also decreasing. “We have grown very fast for years. In 2021 alone we have already hired 10,000 people worldwide, you cannot keep up that pace and no one can expect that of you.” The spokeswoman emphasizes that there will be no reorganization or massive job losses.