Applied Materials lays off staff - report
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 12:51 PM ET Aug. 6, 2001
SANTA CLARA, Calif. (CBS.MW) -- Applied Materials, the world's largest semiconductor equipment maker, has started laying off employees, according to a research report from Prudential Securities on Monday afternoon.
Applied shares (AMAT: news, chart, profile) fell $1.05, or 2.1 percent, at $48.52 on Monday afternoon.
Analyst Shekhar Pramanick of Prudential said his research indicates layoffs of "a few percent" began last week and that they affect all divisions. Applied employs about 20,000 workers.
Applied Materials spokesman Jeff Lette said, "We're in a quiet period and are unable to comment about the ongoing operations of the company."
The company will report fiscal third-quarter financial results on Aug. 14. Analysts surveyed by Thomson Financial/First Call expect earnings of 2 cents a share on revenue of $1.25 billion, on average.
Pramanick said, according to a research note, that the "modest" layoffs are an indication that the company does not yet see an upturn in its business and that it is adjusting its cost structure so it can remain at break-even levels.
On July 16, Applied CFO Joe Bronson said the "near term was not a good situation" and that the economic situation surrounding the company had not changed for better or worse. See full story.
Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.
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