Chip equipment maker Applied Materials is cutting about four per cent of its global workforce, affecting roughly 1,400 employees. The move is said to be a part of a broader restructuring effort to streamline operations and adapt to shifting market dynamics.
As per several media reports, the company said that it had begun notifying impacted employees across departments and regions. In a regulatory filing, Applied Materials stated that automation, digitalisation, and changing global-supply patterns are reshaping its talent needs and skill requirements.
The layoffs come as the company faces growing pressure from tightening US export controls on semiconductor technology, which have restricted its ability to sell certain products and services to China-based customers. Earlier this month, the firm warned of a $600 million hit to its fiscal 2026 revenue due to the expanded curbs. The announcement caused shares to dip about 3 per cent in extended trading.
To execute the layoffs, Applied Materials expects to incur charges of $160 million to $180 million, primarily for severance and related costs, most of which will be recorded in the fourth quarter of fiscal 2025.
The restructuring marks the company’s latest step to simplify its organisational structure and boost productivity. With around 36,000 employees worldwide, the reduction is aimed at creating what leadership calls a more agile and competitive workforce.
The decision comes at the end of the company’s fiscal year, a period marked by geopolitical challenges and a slowdown in semiconductor demand. Applied Materials said the move will help it position for long-term growth, focusing on faster decision-making, innovation, and operational efficiency in a changing global tech landscape.
