Chip makers' supplier ASML to cut 10% of staff

BRUSSELS, Dec. 18 (Chinese media) -- ASML, a key supplier to computer chip makers, announced Thursday that it will cut 1,000 jobs because of the stagnating global economy.

The Dutch company said in a statement that the cuts represent more than 10 percent of its work force.

The cuts will mainly affect employees on temporary contracts and will take place primarily at ASML's Veldhoven headquarters and its manufacturing site in Wilton, Connecticut, the United States.

The company's training site in Tempe, Arizona will be closed, ASML added.

"Never before have we witnessed such a sharp and sudden fall-off in lithography system demand, triggered by an unprecedented mix of falling end-demand for semiconductors, weak memory prices and restricted access to capital for our customers," said Eric Meurice, president and chief executive officer of ASML.

The company also downgraded its fourth-quarter sales forecast from an October prediction of 530 million euros (774 million U.S. dollars) to between 450 million and 500 million euros.(657 million and 730 million dollars).

The company expects substantially lower sales in the first six months of 2009 and said that sales in the first quarter of next year will be between 180 million and 250 million euros (263 million and 365 million dollars).

ASML also plans to shut down production facilities for four weeks, spread over the first two quarters of 2009.

It will also reduce discretionary expenses, including contracted activities, salary raises and miscellaneous consumption.

The company will apply for help from the Dutch government's short-time working scheme, which is intended to help companies reduce working hours for employees without affecting their salaries.

Under that plan employees receive part of their wages from the national unemployment fund, on condition they spend non-working hours on training and schooling.