Applied Material cuts costs by voluntary redundancies

Applied Material cuts costs by voluntary redundancies
Tom Foremski
Hard times in the chip equipment market have forced market leader Applied Materials to cut expenses by offering voluntary severance to its employees and shutting down its operations for several days at a time.
Sources close to Applied Materials say that the firm is looking for a ten per cent reduction in its staff, which would mean job cuts of more than 1600 workers. The company is hoping that there will be enough takers for it to keep the job cuts voluntary, but this strategy also leaves the company open to losing some of its best workers who can easily find jobs elsewhere.
Applied and other chip equipment makers have been hurt by the Asian economic crisis and also a glut of memory chip fabs, forcing many large chip makers to cancel or postpone fabs and upgrades.

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