Applied to lay off 6-9% of workforce
Applied Materials, the No.1 supplier of semiconductor manufacturing equipment, is to cut 900 to 1,300 jobs representing 6% – 9% of its workforce via a voluntary retirement and other programmes.
The cuts come in a weak year for semiconductor infrastructure capex.
The voluntary retirement program will be available to US employees who meet minimum age and length of service requirements, as well as other business-specific criteria.?
The extent of other global workforce reductions will depend on the number of employees who participate in the voluntary retirement programme and ‘other considerations’.?
Applied expects to substantially complete the restructuring plan by the end of the third quarter of fiscal 2013, depending on local legal requirements.?
Upon completion, the plan is projected to make available approximately $140m to $190mn annually to fund ‘key growth initiatives’.
Applied expects to incur aggregate pre-tax restructuring charges comprised of severance and other termination benefits in the range of $180m to $230m, substantially all of which will be paid in cash.?
The effect will be seen in the Q4 results and during 2013.