Applied Materials lays off 4% of workforce
Sign outside Applied Materials headquarters in Santa Clara, California, United States, on Thursday, May 13, 2021.
David Paul Morris | Bloomberg | Getty Images
chip equipment manufacturer Applied Materials It lays off 4 percent of its workforce
The company began notifying affected employees worldwide “at all levels and groups” on Thursday. filing. Applied Materials provides equipment, services and software to industries including the semiconductor industry.
According to records in August 2025, Applied Materials had approximately 36,100 full-time employees. A 4 percent layoff represents approximately 1,444 employees.
“Automation, digitalization, and geographic shifts are redefining our workforce needs and skill requirements,” the company wrote in the filing. “With this in mind, we have been focused for some time on building high-speed, high-productivity teams, embracing new technologies, and simplifying organizational structures.”
The move will take place at the end of the company’s financial year. Earlier this month, Applied Materials guess There’s a $600 million hit to fiscal 2026 revenue after the US expanded its restricted export list. This caused the company’s shares to fall 3% in extended trading.
As a result of the workforce reduction, Applied Materials is expected to pay approximately $160 million to $180 million, consisting of severance pay and other one-time employment contractual compensation payable in cash, the filing said.
The company said the cuts were a way to position itself as a “more competitive and productive organization.”
