Applied Materials cutting 1,000 jobs

The capital equipment company expects to recognize annualized savings of approximately $150 million from fiscal 2007 spending levels.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 1/15/2008

To improve operational efficiencies and the cost structure of the company, as well as to allow it to pursue growth opportunities, Santa Clara, Calif.-based semiconductor manufacturing equipment company Applied Materials Inc today said it plans to eliminate approximately 1,000 positions or about 7% of its workforce, primarily affecting its semiconductor equipment and services businesses and related support organizations.

Mike Splinter, president and CEO of Applied reminded that to better serve customers, last summer the company reorganized its semiconductor equipment business into a single silicon systems group, and achieved synergies across this organization as a result.

“We are focused on improving operational efficiencies and the cost structure of our businesses, as well as enhancing our ability to pursue growth opportunities,” Splinter added in a statement.

Applied said it expects to record approximately $20 million in charges related to the cuts, with the majority of the charges being recorded in fiscal Q1. The company expects to complete all cuts by fiscal Q4, and to recognize annualized savings of approximately $150 million from fiscal 2007 spending levels.

In related news, Nokia today announced it would lay off 2,300 employees as it exits mobile phone production in Germany.