Applied Materials lays off 4% of workforce

Applied Materials, a leading manufacturer of chip-making equipment, has announced a plan to reduce its workforce by 4%. The company began notifying affected employees worldwide on Thursday, impacting staff across various levels and departments. With approximately 36,100 full-time employees, this layoff will result in around 1,444 job losses. The decision comes as Applied Materials cites evolving workforce needs driven by automation, digitalization, and shifts in global operations. In its formal communication, the company expressed the importance of adapting to these changes by building agile, high-productivity teams and embracing new technologies. This announcement follows a challenging financial forecast, where earlier this month, Applied Materials predicted a $600 million decline in revenue for fiscal 2026 due to expanded export restrictions from the U.S. As a consequence, the company's shares fell by 3% in after-hours trading. The layoffs are expected to incur costs between $160 million and $180 million, primarily related to severance and other one-time termination benefits. The company views these workforce reductions as a strategic move to enhance its competitiveness and operational efficiency in a rapidly changing market.