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dylan.mcgrath
Not sure if that is technically true, but it does seem to be the case. The ...
agk
This is a routine procedure in every company to strengthen their positions. ...
Applied Materials slashing jobs
Dylan McGrath
10/3/2012 6:58 PM EDT
SAN FRANCISCO—Semiconductor and solar panel production equipment maker Applied Materials Inc. will eliminate 900 to 1,300 jobs through a voluntary retirement program and layoffs, the company said Wednesday (Oct. 3).
The cuts, which will reduce Applied's total workforce by 6 to 9 percent, are being implemented as Applied invests in product development capabilities to spur, CEO Mike Splinter said in a statement.
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The job cuts are expected to make available $140 million to $190 million to use to fund key growth initiatives, Applied said.
"Achieving our strategic objectives requires us to deploy our talent in the best way possible," Splinter said.
The voluntary retirement program will be available to certain U.S. employees who meet minimum age and length of service requirements, as well as other criteria, Applied said. The company said the extent of layoffs globally would depend largely on the number of employees who participate in the in the voluntary retirement program.
Applied said it expects to largely complete the restructuring by the end of July 2013. Applied said it expects to incur charges of $180 million to $230 million, mostly for severance and other termination benefits. The company said it would begin recording these charges in the current quarter.
In August, Applied said it expected its orders to decline 25 to 40 percent sequentially in the current quarter, which closes at the end of this month. Executives said at the time that they expected orders for Applied's semiconductor business to decline 45 to 50 percent in the quarter.
Related stories:
The cuts, which will reduce Applied's total workforce by 6 to 9 percent, are being implemented as Applied invests in product development capabilities to spur, CEO Mike Splinter said in a statement.
[Get a 10% discount on ARM TechCon 2012 conference passes by using promo code EDIT. Click here to learn about the show and register.]
The job cuts are expected to make available $140 million to $190 million to use to fund key growth initiatives, Applied said.
"Achieving our strategic objectives requires us to deploy our talent in the best way possible," Splinter said. The voluntary retirement program will be available to certain U.S. employees who meet minimum age and length of service requirements, as well as other criteria, Applied said. The company said the extent of layoffs globally would depend largely on the number of employees who participate in the in the voluntary retirement program.
Applied said it expects to largely complete the restructuring by the end of July 2013. Applied said it expects to incur charges of $180 million to $230 million, mostly for severance and other termination benefits. The company said it would begin recording these charges in the current quarter.
In August, Applied said it expected its orders to decline 25 to 40 percent sequentially in the current quarter, which closes at the end of this month. Executives said at the time that they expected orders for Applied's semiconductor business to decline 45 to 50 percent in the quarter.
Related stories:
- Applied sees fab tool orders falling in 2012
- When will NAND sales surpass DRAM?
- Applied appoints former Varian CEO president
- Foundries' 28-nm capacity build keeping Applied in the black
- Applied sees flat to declining sales
- Applied Materials CEO: solid chip-equipment spending in 2013
- Applied Materials, IME open Singapore 3-D packaging lab
- Applied sees strong capital spending by foundries
- Fab tool vendor Brooks cuts 10% of workforce
- Renesas cuts 14,000 jobs; fab sale to TSMC
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goafrit
10/4/2012 6:20 PM EDT
These companies depend on human careers to balance their books. Very pathetic
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goafrit
10/4/2012 6:20 PM EDT
Let me add that being a solar player could mean they are having tough time doing business with the excess capacity from China.
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agk
10/5/2012 8:44 AM EDT
This is a routine procedure in every company to strengthen their positions. Definitely all the active and efficient employees will be retained.
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