Particle.news
Download on the App Store
5 ARTICLES
·
yesterday

Applied Materials Cuts 4% of Workforce, Starts Global Notifications

The company expects a $160 million to $180 million restructuring charge tied to U.S. export curbs on China sales.

Image
Vice President Kamala Harris speaks during the Summit to Advance Semiconductor Leadership held at Applied Materials in Sunnyvale, on May 22, 2023 while endorsing the Biden administration's CHIPS Act.
A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration
Image

Overview

  • Notifications began Thursday across all levels and groups worldwide, covering roughly 1,400 roles, or about 4% of staff.
  • Most restructuring costs will be recognized in the fourth quarter of fiscal 2025, with the plan slated to wrap by the first quarter of fiscal 2026.
  • Applied Materials has forecast a $600 million reduction to fiscal 2026 revenue from expanded U.S. restrictions on advanced equipment sales to China.
  • CEO Gary Dickerson told employees the reorganization aims to speed decisions, simplify structures, and build higher-productivity teams.
  • The stock slipped after the announcement, with shares lower in late trading Thursday and premarket Friday.