Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: H James Morris who wrote (19698)	5/27/1998 7:42:00 AM
From: Xpiderman	Respond to of 70976

Applied Materials seeks work force cuts Reuters http://www.sjmercury.com/breaking/headline1/069790.htm Posted at 4:47 p.m. PDT Tuesday, May 26, 1998 SAN FRANCISCO - Applied Materials Inc., the world's biggest maker of semiconductor equipment, said it will launch a voluntary work force reduction plan next month and, as a result, expects a third-quarter restructuring charge of up to $30 million. Applied said it will begin offering a voluntary separation plan on a selective basis to employees starting in early June. It said the majority of the targeted employees are in Santa Clara and in Austin. The Santa Clara, Calif.-based company has 15,500 employees worldwide. Applied said it is taking the action due to continued cutbacks in capital spending by its semiconductor-making customers. ''It's a voluntary program, so we don't know how many will take it,'' said an Applied spokesman. ''Our goal is to be at about 14,000 at the end of the third quarter.'' Applied expects to incur a pretax restructuring charge of $25 million to $30 million, or about 5 cents a share after tax, during its fiscal third quarter ending July 26. The charge will primarily cover the cost of employee severance packages and benefits, Applied said. Applied said that, while it has implemented several cost reduction programs this year, the continued slowdown in semiconductor demand is forcing the company to cut expenses further. While the semiconductor industry is experiencing a slowdown, Applied said it remains confident about its long-term business outlook. Earlier this month, when Applied reported second quarter earnings were on target, executives said the total head count had been reduced 4.9 percent to 15,500, down 800 from the prior quarter's head count of 16,300. Analysts said at the time they had expected Applied would put in place other ''head count management'' plans, short of layoffs, in a move to reduce its work force by about 10 percent, from 16,300.