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Applied Materials to Cut Jobs

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SANTA CLARA, Calif., Jan. 15, 2008 -- Applied Materials Inc. announced today it will cut approximately 1000 jobs, or about 7 percent of its global work force, as part of a cost reduction plan that primarily affects its semiconductor equipment and services businesses and related support organizations. The company, based in Santa Clara, Calif., makes semiconductor chips, flat panels, solar photovoltaic cells, flexible electronics and energy-efficient glass.

The company said in a statement that positions will be eliminated through a combination of job elimination and attrition. According to its Web site, it employs approximately 14,000 people in the US, Canada, China, Europe, Israel, India, Malaysia and Singapore, Japan, Korea and Taiwan. It did not specify where jobs will be eliminated.

“To better serve our customers, last summer we reorganized our semiconductor equipment business into a single Silicon Systems Group, and we have achieved synergies across this organization as a result,” said Mike Splinter, president and CEO. “We are focused on improving operational efficiencies and the cost structure of our businesses, as well as enhancing our ability to pursue growth opportunities.”

Applied said it expects to record charges of approximately $20 million related to the plan, with the majority being recorded in the first quarter of fiscal 2008, and to complete the plan by the fourth quarter of fiscal 2008. The plan is expected to result in annualized savings of about $150 million from fiscal 2007 spending levels.

Applied Materials opened a nanomaufacturing lab in November at the Indian Institute of Technology Bombay, to serve as a research and educational platform for faculty, students and researchers to develop technologies in the semiconductor and nanomanufacturing industries. That month, it also announced in was entering the solar business. In December, the company's board approved a quarterly cash dividend of $0.06 per share payable on the company’s common stock. The dividend is payable on March 6, 2008 to stockholders of record as of Feb. 14.

For more information, visit: www.appliedmaterials.com
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Published: January 2008
Glossary
nano
An SI prefix meaning one billionth (10-9). Nano can also be used to indicate the study of atoms, molecules and other structures and particles on the nanometer scale. Nano-optics (also referred to as nanophotonics), for example, is the study of how light and light-matter interactions behave on the nanometer scale. See nanophotonics.
photonics
The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
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