Applied Materials announced Tuesday it is trying to trim its operating costs by cutting jobs on a voluntary basis. This is the latest in the company's efforts to hold down its budget, as the semiconductor and equipment industries have both been affected by a slowdown.
Applied AMAT will offer certain eligible workers, mostly at its sites in Santa Clara, Calif., and in Austin, Texas, the opportunity to voluntarily terminate their employment and receive a severance package. The program will be offered next month.
The world's largest semiconductor equipment supplier has already tried this year to limit spending at all levels of the company, and has also implemented a series of shutdown days. About a hundred contract positions were eliminated through attrition in Texas, as well, but the company has been hit by a continued slowdown in orders.
This workforce reduction will cost Applied $25 million to $30 million in a restructuring charge, about 5 cents per share.