Applied Materials: Big Changes Ahead

Applied Materials, a major player in the semiconductor manufacturing equipment industry, is making some big moves. They plan to let go of 4% of their workforce. This means around 1, 400 people will lose their jobs. The company expects to spend between $160 million and $180 million on these layoffs, mostly in the last quarter of their fiscal year 2025. Why is this happening? Well, the U. S. government recently tightened rules on exporting chipmaking equipment to China and other countries. This has made it tougher for Applied Materials to sell some of their products and services without special permission. Earlier this month, they even predicted a $600 million drop in revenue for fiscal year 2026 because of these new rules. The company started telling employees about the layoffs on a Thursday. As of October 27, 2024, they had 35, 700 full-time employees. The CEO, Gary Dickerson, sent a memo to employees explaining that these changes are meant to make the company more efficient and ready for future growth. But let's think about this. Layoffs are never easy, and it's important to consider the impact on the employees and their families. At the same time, companies like Applied Materials have to adapt to changing regulations and market conditions. It's a tough balance.