Nov. 4, 2002 – Santa Clara, CA – Applied Materials Inc. it will reduce its global work force by approximately 1,750 positions, or approximately 11%, to address the continuing downturn in the semiconductor industry. Employees will be notified beginning Nov. 5.
The company will record a restructuring charge in 1Q03, ending Jan. 26, 2003.
Approximately 800 positions at Applied Materials’ Silicon Valley operations and approximately 200 positions at the company’s Austin operations will be affected. The remaining positions are expected to be eliminated at other locations in the United States and worldwide by the end of the company’s first fiscal quarter.
“This was a painful but necessary decision to make in order to enable the company to align our operations with the current level of business and position for future growth,” said James Morgan, chairman and CEO of Applied Materials. “Despite our stringent cost-savings programs, the continuing uncertainty in the marketplace makes it necessary for us to take additional action to lower costs while at the same time preserving our investment in the technology and infrastructure that will enable Applied Materials to emerge from this downturn even stronger.”