ASML is cutting costs. Fewer trips and training courses, no new sponsorships, and restrictions on hiring staff. The Veldhoven-based chip machine maker is engaged in a substantial cost-cutting programme. Profitability is under pressure.
ED reports this on Friday morning. For years it seemed that money was growing on trees for chip machine builder ASML. But appearances are deceptive. The eye at ASML is not only on huge growth for the next few years. The Veldhoven-based chip machine manufacturer wants to cut costs sharply this year.
Transitional year
ASML revealed earlier that 2024 will be a transition year, with roughly the same turnover as in 2023. Sources around the company have revealed in recent weeks that ASML is cutting costs. Profits made on its chip machines are under pressure. Those involved say that the belt is being tightened considerably. They speak of a ‘heavy cost-cutting programme’.
According to internal announcements, employees are allowed to travel less. For senior management, flying business class is taboo. Visits to suppliers and conferences are restricted. Spending on training and education will also be cut. Expensive (foreign) training courses are to be postponed.
Much investment
An ASML spokeswoman, confirming reports by the Eindhovens Dagblad, explained that 2024 is a transition year. Next year, the maker of advanced machines for semiconductor production expects to grow rapidly, which will cost a lot of money at first. “We have to invest a lot now to prepare for that growth,” he says.
Therefore, the pace at which ASML was hiring new staff is also slowing down. “We have been growing very fast for years. In 2021 alone we hired 10,000 people worldwide, you don’t keep up that pace and nobody can demand that of you.” The spokeswoman stressed that no reorganisation or massive job losses were imminent.
Source: Studio040
Translated by Chaitali Sengupta. She also gives online INBURGERING classes.
