Applied Materials to cut 1,700 jobs

Dec. 12, 2001 – Santa Clara, CA – Applied Materials Inc. will reduce its global work force by approximately 1,700 positions, or some 10%, in response to the continuing downturn in the semiconductor industry.

The company will record a restructuring charge for 1Q02, ending Jan. 27, 2002.

Approximately 450 positions at Applied Materials’ Silicon Valley operations and approximately 600 positions at the company’s Austin, TX, operations will be affected. Employees in selected groups will be offered the option of participating in a furlough program.

Applied has implemented several cost-saving programs in response to the slowed demand in the semiconductor and equipment industries, including executive and employee salary reductions, restricted hiring and travel, mandatory shutdown days, a voluntary separation plan and a reduction in the regular and temporary work force.

“Unfortunately, the continuing downturn requires us to make some tough decisions to align our operations with current levels of demand for semiconductor equipment,” said James Morgan, chairman and CEO of Applied Materials. “While the short-term business environment is uncertain, we are confident in the long-term prospects of our industry.”


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