ASML Logs Record Orders on AI Chip Boom, Announces 1,700 Job Cuts

The company closed 2025 with record annual revenue and a large order backlog.

The ASML logo, in this illustration. Dado Ruvic/Reuters

Dutch chip equipment maker ASML on Jan. 28 reported record orders in the final quarter of 2025, boosted by strong demand for artificial intelligence (AI) chips, and raised its outlook for 2026, even as it said it plans to cut about 1,700 jobs as part of an internal restructuring.

The company’s net sales reached 9.7 billion euros ($11.6 billion), its highest on record, with a gross margin of 52.2 percent and net income of 2.8 billion euros ($3.3 billion), according to an ASLM statement. For full-year 2025, the total net sales reached 32.7 billion euros ($39.1 billion).

The company’s order backlog stood at 38.8 billion euros ($46.4 billion) at the end of the year, underlining the strength of demand for its machines.

ASML said revenue in the fourth quarter included sales recognized for two High NA EUV systems, its newest and most complex tools, which are designed to support the next generation of chip manufacturing.

ASML CEO Christophe Fouquet said customer sentiment has improved noticeably in recent months, driven largely by confidence that AI-related demand will be sustained over the medium term.

Job Cuts

At the same time as it reported strong financial results, ASML said it intends to reduce its workforce by about 1,700 positions as part of a restructuring focused on its technology and IT organizations.

In an internal message to employees dated Jan. 28 and signed by Fouquet, he said ASML’s operations had, “in some cases, become less agile,” as the company expanded rapidly in recent years.

“Engineers in particular have expressed their desire to focus their time on engineering, without being hampered by slow process flows, and restore the fast-moving culture that has made us so successful,” he said.

ASML plans to simplify processes and speed up decision-making, based on feedback the company has received from across the organization. It is proposing to move away from a project and matrix-based setup toward a structure in which most engineers are dedicated to a specific product and module.

The company said this change is intended to reduce complexity and improve accountability.

As a result of the proposed changes, some roles, mainly at the leadership level, may no longer be required, the company said.

“At this stage, we believe the proposed changes could ultimately result in a net reduction of around 1,700 positions, mostly in the Netherlands, with some in the United States,” the memo said.

At the same time, ASML said it plans to create new engineering jobs to support existing technology projects and launch new ones aligned with its own growth plans and those of its customers.

While some affected employees may be able to move into new roles, some staff will leave the company as a result of the restructuring, the company said.

Outlook Raised for 2026

Looking ahead, ASML said on Jan. 28 that it expects growth to continue into 2026, with total net sales forecast to come in at 34 billion–39 billion euros ($47.7 billion–$46.6 billion), up from 2025 levels.

Fouquet said the company plans to keep investing heavily in research and development as well as its workforce to support future growth.

The guidance reflects management’s view that demand linked to AI will remain strong over the medium term, rather than proving to be a short-lived spike. That expectation has encouraged customers to expand their capacity plans, feeding into ASML’s record order intake.