Applied Materials said on Thursday it will lay off about 4 per cent of its workforce, or roughly 1,400 employees, as part of efforts to streamline operations in response to tighter US export restrictions on semiconductors.
The company expects to incur charges of between USD 160 million and USD 180 million for the layoffs, mostly in the fourth quarter of fiscal 2025, according to a regulatory filing. The cuts follow recent US measures aimed at preventing companies in China and elsewhere from using subsidiaries or foreign affiliates to bypass export controls on chipmaking equipment and technology.
Applied Materials, one of the world’s leading suppliers of semiconductor manufacturing tools, has said the expanded curbs could impact its fiscal 2026 revenue by around USD 600 million.
In a memo to staff, CEO Gary Dickerson said the restructuring is intended to help the company “move faster, simplify decision-making, and focus on what matters most” as it prepares for future growth. The company had 35,700 full-time employees as of October 2024.
Source – https://www.businessworld.in/article/applied-materials-to-cut-1-400-jobs-amid-us-export-curbs-576715