The semiconductor equipment and services businesses of Applied Materials will be the hardest hit by the upcoming 7% workforce reduction announced today.  Approximately 1,000 jobs will be cut by a combination of job elimination and attrition.

The reason given for the cuts is cost reduction. Faced with an estimated bill of charges for the job cuts of $20 million, the majority of the costs will be accounted for in the first quarter of fiscal 2008, while the remainder will be completed by the fourth quarter of fiscal 2008. As a result of the cost cuts, Applied Materials is expecting annual savings of $150 million over 2007’s earnings.

By Síle Mc Mahon