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Applied Materials to Cut 12% of WorkersPOSTED November 13, 2008 SANTA CLARA -- Semiconductor equipment maker Applied Materials reported fiscal 2008 sales of $8.13 billion, down from $9.73 billion for fiscal 2007. The company did report a profit of $961 million for the year but announced it will cut 12% of its workforce or 1,800 jobs. "Fiscal 2008 was a pivotal year for Applied as we made significant progress in advancing our Silicon and Display businesses and expanding in the solar market. Our fourth quarter results demonstrate effective performance in a very challenging environment," said Mike Splinter, president and CEO. "We passed a major milestone as the first SunFab Thin Film Solar Line began volume production demonstrating Applied's commitment to deliver exciting new technology to the solar industry" Applied said it will implement a restructuring program beginning in the first quarter of fiscal 2009, designed to streamline the organization and reduce operating costs. When completed the program is expected to drive annualized cost savings of approximately $400 million. As part of this program, the company plans to reduce its global workforce by approximately 12% or 1,800 positions by the end of fiscal 2009 through a combination of attrition, voluntary separation and other workforce reduction programs consistent with local legal requirements and in consultation with employee representatives, where applicable. National Semiconductor, a chip maker also based in Santa Clara, said it plans to cut jobs. The company will reduce the size of its global workforce by eliminating approximately 330 positions, primarily in non-manufacturing functions. Resources will be re-prioritized toward National’s most important growth initiatives, which leverage the company’s growing portfolio of PowerWise energy-efficient solutions. National currently employs approximately 7,000 people worldwide. © Copyright SVDaily.com |
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