Applied Materials to cut 12pc of workforce
Published: 13 Nov 2008 11:30 GMT
Chip-equipment maker Applied Materials is cutting 12 percent of its workforce, in the wake of declining profit numbers and an Intel warning that fourth-quarter revenue will be less than previously forecast.
Applied Materials announced that 1,800 jobs will be cut by this time next year, which could save the company $400m (£268m) a year. Applied Materials makes the complicated and expensive equipment that Intel and AMD use to manufacture their processors. If those companies see a downturn in their business, companies like Applied Materials also face trouble.
With Intel reporting a huge decline in its expected revenue for the fourth quarter on Wednesday, Applied Materials could be in for a tough 2009.
Applied Materials chief executive Mike Splinter noted in a press release that the company is working hard to build equipment for the solar industry, but there may be no safe harbour for a while.
Credit: Applied Materials cutting 12 percent of workforce from CNET News.com
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