Applied Materials announces 4% global workforce reduction

Chipmaker Applied Materials (NASDAQ:AMAT) on Thursday announced a 4% reduction in its global workforce.

The company expects to incur charges of about $160 million to $180 million, consisting primarily of severance and other one-time employment termination benefits to be paid in cash, and other non-cash related charges.

In a mail sent to employees by CEO Gary Dickerson, the company has begun notifying impacted employees around the world about the workforce reduction plan, starting Thursday.

Applied Materials expects to recognize most of these charges in the fourth quarter of fiscal 2025 and to complete the plan in the first quarter of fiscal 2026.

Several companies are going for significant reduction in their workforce to cut down on costs. Earlier in the day, Target disclosed that it will cut 1,800 positions from its corporate headcount.

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