(Reuters) -Applied Materials will cut about 4% of its workforce, or roughly 1,400 jobs, to streamline operations, the chip equipment maker said on Thursday as tighter U.S. export controls on semiconductors weigh on its business.
The company, one of the largest U.S. makers of semiconductor manufacturing equipment, will take a charge of $160 million to $180 million for the layoffs, mostly in the fourth quarter of fiscal 2025, it disclosed in a regulatory filing.
Late in September, Washington cracked down on companies in China and other countries that use subsidiaries or other foreign affiliates to circumvent export curbs on chipmaking equipment and other goods and technology.
That has made it harder for Applied Materials and its rivals to export some products and supply specific parts and services to select China-based customers without a license. The company earlier this month forecast a $600-million hit to its fiscal 2026 revenue due to the expanded curbs.
It said it started informing its employees about the layoffs earlier on Thursday. It had 35,700 full-time staff as of October 27, 2024, according to its annual report.
“Our goal is to continue to transform how we work, move faster, simplify decision-making, and focus on what matters most as we prepare Applied Materials for significant growth in the coming years,” CEO Gary Dickerson said in a memo to employees.
(Reporting by Aditya Soni in Bengaluru; Editing by Alan Barona)
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