Tuesday, November 5, 2002
The semiconductor downturn clearly isn’t over yet. After several weeks of speculation among the investment and financial analyst community, Applied Materials Inc. today said it is cutting about 1,750 jobs, or about 11 percent of its workforce. However, the unlucky employees about to lose their jobs will not be informed until tomorrow, the company said.
The company's Silicon Valley offices will be hit the hardest, as the Santa Clara, Calif.-based company plans to cut 800 jobs from its operations there. A further 200 jobs will go from Applied’s Austin facility. The remaining cuts will take place at locations across the U.S. and the rest of the world.
Applied said it expects the layoffs to be completed by the end of its fiscal Q1, ending Jan. 26. The company will record a restructuring charge, and gave no estimate of the cost savings the job cuts are expected to produce.
"This was a painful but necessary decision to make in order to enable the company to align our operations with the current level of business and position for future growth," said James C. Morgan, chairman and CEO of Applied, in a statement. "Despite our stringent cost-savings programs, the continuing uncertainty in the marketplace makes it necessary for us to take additional action to lower costs while at the same time preserving our investment in the technology and infrastructure that will enable Applied Materials to emerge from this downturn even stronger."
By: DocMemory
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