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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (57298)	12/12/2001 9:11:52 PM
From: Sam Citron	Read Replies (1) \| Respond to of 70976

BWAC, You're right to emphasize this dimension. Where is breakeven for AMAT's competitors? Sam

To: BWAC who wrote (57298)	12/12/2001 9:34:19 PM
From: advocatedevil	Read Replies (1) \| Respond to of 70976

BWAC, There will certainly be a positive impact as a result of AMAT's cost cutting. By focusing only on that aspect of the layoffs, one could spin the announcement as great news. IMO, the implications of today's action is more significant than the cost reductions. The bottom line is that reducing AMAT's workforce at this point in time is a clear indication of expected weakness over the next couple quarters (at least). I believe that Applied implemented this measure as a last resort. Layoffs are costly. 2nd round layoffs are even more costly because good employees are often forced to leave. AdvocateDevil

To: BWAC who wrote (57298)	12/13/2001 8:50:27 AM
From: Katherine Derbyshire	Read Replies (2) \| Respond to of 70976

>>When the turn in business does come, AMAT will be lean on cost. And I'm sure you know the rapid upslope of earnings once fixed or breakeven cost are exceeded by increasing sales. (Whenever that time is.)<< Except in the last upturn AMAT was so lean that they had some pretty serious problems ramping back up to meet customer orders. Having layoffs at the bottom is usually not a brilliant idea. AMAT certainly knows that, so the current layoffs suggest that they don't think this is the bottom. Katherine