"Earlier this month, Applied Materials said an expansion of US export curbs to China would cost the company $600 million in lost revenue in fiscal 2026, which runs through next October. Applied Materials and its peers have faced increasingly strict rules governing their ability to supply and support customers in China. The clampdown is part of a push in Washington to limit the Asian nation's ability to develop domestic chip supply."
"Applied Materials had 36,100 employees as of the end of July, suggesting that the cuts could affect more than 1,400 workers. Applied Materials expects the cuts to cost $160 million to $180 million, mostly from severance pay and one-time termination benefits. The Santa Clara, California-based company plans to record most of these charges in the fourth quarter, with the cutback plan reaching completion in the first quarter of fiscal 2026."
Applied Materials will reduce its global workforce by 4%, cutting more than 1,400 jobs from an employee base of 36,100 to respond to a sales slowdown and trade turmoil. The company projects a $600 million revenue loss in fiscal 2026 due to expanded US export curbs to China and faces stricter rules on supplying and supporting Chinese customers. The restructuring is expected to cost $160 million to $180 million, mostly for severance and one-time termination benefits, with most charges recorded in the fourth quarter and completion slated for the first quarter of fiscal 2026. The company frames the moves as positioning for future semiconductor growth and improved competitiveness.
Read at www.mercurynews.com
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