ASML Cuts 1,700 Managers While Racing to Build 60 EUV Machines in 2026

ASML cuts 1,700 jobs and invests billions in factory expansion amid AI demand jitters, raising 2026 revenue guidance to €40 billion.

The Dutch lithography giant is executing a high-stakes balancing act: slashing management layers even as it pours billions into factory expansion to meet surging chip demand. ASML’s share price, however, has been caught in a crosscurrent of AI jitters and technical headwinds.

The stock slid nearly five percent on Tuesday after the Wall Street Journal reported that OpenAI had missed internal user and revenue targets. Investors immediately extrapolated the worst: if the AI boom cools, tech titans like Microsoft and Alphabet could pull back on data-center spending. That would directly hit ASML, whose extreme ultraviolet (EUV) lithography systems are essential for producing the advanced chips powering AI workloads.

By Wednesday morning, the shares had steadied at €1,185.40 in Amsterdam, still down roughly five percent over the past week. Yet the year-to-date gain remains a robust 20 percent, and on a 12-month view the stock has surged about 104 percent, closing Wednesday at €1,192.

A 36% Production Leap

While the market frets about demand, ASML’s management is charging in the opposite direction. The company plans to boost EUV machine output by roughly 36 percent in 2026, targeting at least 60 standard systems this year and ramping to 80 units by 2027. That represents a dramatic acceleration from historical production levels.

The expansion comes at a steep price. ASML is investing a billion-euro sum this year alone in new factories, determined not to become a bottleneck for customers building out AI infrastructure. The bet is underpinned by strong first-quarter results: revenue of €8.8 billion, net income of €2.8 billion, and a gross margin of 53 percent — the top end of management’s own guidance.

Revenue Guidance Raised, Workforce Reshaped

That performance gave the board confidence to lift the full-year revenue forecast. ASML now expects 2026 sales between €36 billion and €40 billion, raising the floor by €2 billion from the previous range. The high end is driven by demand for new High-NA EUV machines, each costing more than €350 million.

But the operational strength masks a painful internal overhaul. ASML is cutting approximately 1,700 positions — about four percent of its global workforce — targeting middle managers, team leaders, and project coordinators. The goal is to flatten hierarchies and reduce complexity.

In a deliberate swap, the company is simultaneously creating roughly 1,400 new engineering roles focused on technical development. A six-week hiring freeze planned for the summer is intended to stabilize the organization during the transition.

New Leadership and a Higher Dividend

The restructuring coincides with changes at the top. Marco Pieters has been appointed Chief Technology Officer, while CFO Roger Dassen and COO Frédéric Schneider-Maunoury received contract extensions. The new team inherits a company running at full throttle.

Shareholders gave their blessing at the late-April annual meeting, approving a final dividend of €2.70 per share. Combined with interim payouts, the total distribution for the year reaches €7.50 — a significant increase from the prior year. The shares have traded ex-dividend since April 27.

The Next Test

For the current quarter, ASML guides for revenue between €8.4 billion and €9.0 billion, with gross margin expected to dip slightly. Analysts view the recent pullback as routine profit-taking after a strong run. The real test comes with the next quarterly report, when the company must back its raised guidance with concrete order intake.

Between the factory buildout, the workforce overhaul, and the AI demand narrative, ASML is playing a long game that few other equipment makers can match. The question is whether the market’s patience matches management’s ambition.