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ASM International is reducing its Dutch based workforce by approximately 200 as it shifts more of its semiconductor equipment manufacturing to its facility in Singapore in an effort to reduce costs and improve product margins in its front-end division. Approximately 350 jobs will remain in Europe working assigned to R&D and service and support activities. The transfer of operations is to be undertaken over the next 12 months.

"Losing loyal and dedicated employees is a painful process. However, we are committed to making tough choices and firmly executing on them in order to deliver improved Front-end profitability," noted Chuck del Prado, President and Chief Executive Officer of ASM International. "We will make every effort to ensure that an equitable social plan for those leaving the Company will be determined in the framework of all applicable consultation procedures with the ASME works council and the trade unions."

In early December 2008, ASML another major equipment supplier based in The Netherlands announced a 10% global workforce reduction due to the severe industry downturn. Although job losses were being targeted with workers on temporary contracts, job losses were planned at its Veldhoven headquarters.