Applied Materials to sack as many as 1,300
World chipmaking equipment leader says it is making cuts in reaction to lacklustre PC sales
Applied Materials, a world leader in chipmaking equipment, plans to cut up to 1,300 jobs as lacklustre personal-computer demand leads customers to slow orders for manufacturing tools.
The plan is to cut a minimum of 900 workers, resulting in pre-tax costs of US$180 million to US$230 million, through a voluntary retirement programme and other actions.
The restructuring would save between US$140 million and US$190 million a year, the Santa Clara, California-based Applied Materials said in a statement yesterday.
Investors and analysts track Applied Materials' earnings as a gauge of optimism about future growth in the overall electronics industry.
The personal computer market may grow by less than 1 per cent this year, its worst showing in more than a decade, according to market researcher IDC.
That means Applied Materials' customers, such as dominant maker Intel, face slowing orders for components, reducing their appetite for spending to increase output.