ASML, the Veldhoven chip machine company, has made the decision to reduce its mass recruitment efforts due to the slowdown in the demand for chips. According to a spokesperson interviewed by Eindhovens Dagblad, ASML aims to shift its focus towards training and integrating the around 10,000 employees it hired last year.

The rapid expansion of ASML's workforce was a response to the surging demand for chip machines. However, upon realizing the scale of training required for the newly hired employees, the organization felt the strain and decided to take a pause. This move will enable ASML to better organize the significant growth it has experienced in its workforce.

It is important to note that while ASML is temporarily suspending mass recruitment, it is not halting the hiring process entirely. The growth rate will simply be slowing down as the company adapts to the changing dynamics of the industry.

The decline in the demand for computer chips, particularly in sectors such as consumer electronics, has been observed for several months. ASML, which manufactures chip-making machines for devices like smartphones and laptops, is inevitably affected by this trend. Consequently, the company has faced a significant drop in new orders during the first quarter. ASML's customers placed orders worth 3.8 billion euros for chip machines in Q1, marking a considerable decrease compared to the 6 to 8 billion euros recorded in previous quarters.

Despite these short-term setbacks, ASML remains optimistic about the industry's long-term growth prospects. The company anticipates a rebound in the demand for chips in the future, reaffirming its commitment to continue meeting the evolving needs of its customers.