Despite its continued strong performance, ASML Holding NV (ASML.US), the world's leading manufacturer of advanced lithography machines, has announced a workforce reduction plan affecting approximately 1,700 positions. CEO Christophe Fouquet, while announcing the annual results, stated that the layoffs will primarily impact the technology and IT departments, mainly affecting management positions in the Netherlands, with some effects on US operations as well. Based on the company's current total headcount, this reduction represents about 4% of its workforce. ASML's Chief Financial Officer, Roger Dassen, explained during a media conference call that this adjustment stems from feedback the company received about its "overly complex organizational structure," which could lead to excessive time spent on process coordination. In contrast to the layoffs is ASML's exceptionally bright financial performance. As the sole global manufacturer capable of producing the cutting-edge extreme ultraviolet (EUV) lithography machines required for advanced semiconductors, ASML continues to benefit from hundreds of billions of dollars in investments in AI infrastructure. The company's financial report released on Wednesday showed its fourth-quarter net new orders reached a record high, with forecasts indicating continued sales growth into 2026. Driven by this news, its stock price in Amsterdam surged by 7.5% to a record high of 1,309 euros per share. Its US-traded shares also hit a new peak of $1,473.59, and were up 4.83% in pre-market trading to $1,524.88 at the time of writing. Despite the job cuts, ASML maintains an optimistic outlook for the future. Its customers, major global chip manufacturers, are confident in the sustainability of AI-related demand and capacity expansion, which in turn is driving order growth for ASML. The company announced it will create new roles in areas such as manufacturing, customer support, and sales. To meet customer demand, ASML is planning to build a second campus in Eindhoven. The company had previously stated its intention to develop a new area, located about five miles from its Veldhoven headquarters, capable of accommodating 20,000 employees. The first phase of this expansion project is expected to be completed by 2028.