October 24 – In response to slowing sales and a turbulent trade environment, Applied Materials (AMAT.US), the largest U.S. manufacturer of chipmaking equipment, has announced plans for global layoffs.
According to a regulatory filing submitted by the company on Thursday, Applied Materials had a total of 36,100 employees as of late July. A 4% reduction would mean more than 1,400 job cuts.
The company stated that the move is intended to "enhance competitiveness and productivity." It expects related costs to range between $160 million and $180 million, primarily consisting of severance pay and one-time termination benefits. The majority of these expenses will be recorded in the fourth quarter of 2025, with the layoff plan set to be completed in the first quarter of fiscal 2026.
Reports indicate that Applied Materials had previously issued disappointing sales and earnings guidance. Financial results show that in the third fiscal quarter ending July 27, the company reported:
Revenue of $7.3 billion, up 8% year-over-year and exceeding analysts' average estimate of $7.21 billion;
Adjusted net profit of $1.989 billion, up 13%;
Adjusted EPS of $2.48, also surpassing the consensus forecast of $2.36.
However, the company forecasted fourth-quarter revenue of approximately $6.7 billion, falling short of the analysts' average expectation of $7.32 billion, and projected adjusted EPS of about $2.11, below the consensus of $2.38.
