ASML is to cut around 1,700 jobs across the Netherlands and the US in an effort to “strengthen [its] focus on engineering and innovation.”

The layoffs will primarily impact leadership level roles across the company’s technology and IT teams, ASML said. At the same time, in an effort to boost its engineering capabilities, the firm plans to create new engineering jobs, although it did not specify how many.

The announcement was made alongside the Dutch chipmaking equipment company’s Q4 2025 and full-year 2025 financial results, which saw ASML post net sales of €9.7 billion ($11.6bn) for the quarter and €32.7bn ($39bn) for the year. Net income for FY2025 was €9.6bn ($11.5bn).

CEO Christophe Fouquet described 2025 as a “record year” for ASML, noting that the fourth quarter was “particularly strong” with sales towards the top end of the company’s forecast.

Quarterly net bookings for the three-month period totaled €13.2bn ($15.8bn), of which €7.4bn ($8.8bn) related to Extreme Ultraviolet lithography (EUV) bookings. The company sold 94 new lithography systems during the quarter, two of which were High NA systems, and eight used systems, up from 66 and six new and used systems in the previous quarter.

Yearly sales of new and used systems totaled 300 and 27, respectively – a decrease from the 380 new and 38 used EUV systems the company sold in FY2024.

“In the last months, many of our customers have shared a notably more positive assessment of the medium-term market situation, primarily based on more robust expectations of the sustainability of AI-related demand,” Fouquet said in comments posted alongside the results.

This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake,” he added. “Therefore, we expect 2026 to be another growth year for ASML’s business, largely driven by a significant increase in EUV sales and growth in our installed base business sales.”

ASML said it expects Q1 2026 net sales to be between €8.2bn ($9.8bn) and €8.9bn ($10.6bn) and forecast full-year net sales of between €34bn ($41bn) and €39bn ($47bn).

Speaking in a pre-recorded video interview published alongside the quarterly results, Fouquet said that while the continued build-out of data centers and AI-related infrastructure has provided a boost to the market outlook, additional capacity needs are now required from ASML’s advanced logic and DRAM customers.

This has led to increased demand across the company’s product portfolio, particularly in its EUV business, Fouquet said.

“In advanced Logic, our foundry customers have become more positive on the long-term sustainability of demand on a number of fronts… In Memory, our customers are reporting very strong demand for both HBM and DDR products, with supply remaining very tight through at least 2026.

“As a result of these dynamics, we see our customers in both segments increasing and accelerating capacity expansion plans to support the very strong demand they are seeing.”