Applied Materials Plans 4% Workforce Cut

Applied Materials said it will cut about 4% of its global workforce, roughly 1,400 jobs, and begin notifying employees worldwide on Oct. 23. The reductions are expected to cost $160 million to $180 million, mostly cash severance and termination benefits that the company said will be recognized largely in fiscal Q4 2025, with the restructuring expected to be completed in fiscal Q1 2026. Management cited automation, digitalization and geographic shifts in skill needs, along with a sales slowdown and tighter U.S. export controls that it said will reduce fiscal 2026 revenue by about $600 million, as drivers of the plan. The company said export-control changes have complicated shipments and service to some China-based customers. Leadership framed the cuts as a move to create higher-velocity, higher-productivity teams and simpler organizational structures, and the stock dipped on an earlier revenue warning.