Applied Materials (AMAT) announced a global cost reduction plan that primarily affects its semiconductor equipment and services businesses and related support organizations. As part of the plan, the company will reduce its global workforce by approximately 1,000 positions, or about 7%, through a combination of job elimination and attrition.
Applied Materials expects to record charges of approximately $20M related to the plan, with the majority of the charges being recorded in the first quarter of fiscal 2008, and to complete the plan by the fourth quarter of fiscal 2008. The plan is expected to result in annualized savings of about $150M from fiscal 2007 spending levels.
Mike Splinter, president and CEO stated, “To better serve our customers, last summer we reorganized our semiconductor equipment business into a single Silicon Systems Group, and we have achieve synergies across this organization as a result. We are focused on improving operational efficiencies and the cost structure of our businesses, as well as enhancing our ability to pursue growth opportunities.”
Applied is a nanomanufacturing technology solutions company with a broad portfolio of innovative equipment service and software products for the fabrication of semiconductor chips, flat panel displays, solar photovoltaic cells, flexible electronics, and energy efficient glass.
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