(TNS) — Applied Materials, one of Silicon Valley's largest semiconductor equipment makers, plans to lay off hundreds of employees worldwide, the company disclosed Thursday.
In a filing with regulators, the Santa Clara firm said it will trim about 4% of its global workforce — roughly 1,400 jobs — affecting "all levels and groups" across its operations.
The reductions come as the company wraps up its fiscal year and looks to streamline its operations.
"Automation, digitalization and geographic shifts are redefining our workforce needs and skill requirements," the company wrote in the filing. "With this in mind, we have been focused for some time on building high-velocity, high-productivity teams, adopting new technologies and simplifying organizational structures."
Applied Materials employs more than 36,000 people worldwide, including nearly 6,000 in the Bay Area. It expects to take a restructuring charge of $160 million to $180 million, largely tied to severance and related expenses.
In a memo to employees, CEO Gary Dickerson described the move as part of a broader transformation meant to prepare the company for its next phase of growth.
"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," he wrote.
The company posted record revenue of $27.18 billion in fiscal 2024 and is on track to surpass that figure this year, though profits have dipped slightly amid tightening U.S. export controls on semiconductor equipment.
Earlier this month, Applied Materials warned that expanded restrictions on sales to China could shave $600 million off its fiscal 2026 revenue.
Shares of Applied Materials closed Thursday at $228.47, near a 52-week high and approaching the company's all-time record of $251.86 set in mid-2024.
Ranked as the 25th-largest employer in the Bay Area, the company said the restructuring will help it become "a more competitive and productive organization" ready to scale for the semiconductor industry's next wave of growth.
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Bay Area Chip Giant Announces Hundreds of Layoffs Amid Restructuring
One of Silicon Valley's largest semiconductor equipment makers, Applied Materials, plans to cut roughly 1,400 positions worldwide as the company seeks to simplify operations and boost long-term productivity.
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