By Tae Kim
Applied Materials will reduce its workforce by 4%, equaling about 1,400 jobs across the company.
The reduction will position the company for "continued growth as a more competitive and productive organization," Applied Materials said in a government filing Thursday.
The company also said it will take a restructuring charge of $160 million to $180 million for severance and other items, with most of the charges to be recognized in the fiscal fourth quarter ending in October.
"Automation, digitalization and geographic shifts are redefining our workforce needs and skill requirements," Applied Materials CEO Gary Dickerson said in an internal memo sent to employees published in the filing. "Our goal is to continue to transform how we work, move faster, simplify decision-making, and focus on what matters most as we prepare Applied Materials for significant growth in the coming years."
In early trading Friday, Applied Materials shares rose by 0.5%. The chip-equipment company's key customers include Intel and Taiwan Semiconductor Manufacturing, or TSMC.
In August, the company gave a disappointing financial outlook below Wall Street expectations, citing lower visibility in the company's China business and an uncertain government policy environment.
Applied Materials stock has rallied 41% so far this year, compared with an 20% rise for the Nasdaq Composite index.
Write to Tae Kim at tae.kim@barrons.com
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October 24, 2025 11:01 ET (15:01 GMT)
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