Applied Materials Inc. said Tuesday it will eliminate 2,000 jobs, or 15 percent of its workforce, to cut costs in the face of slumping sales of its equipment to computer chip manufacturers in Asia and elsewhere.
The No. 1 maker of semiconductor manufacturing equipment will take a charge for the firings, which will result in a fourth-quarter loss. The cuts will start Wednesday and be completed by Oct. 25. Applied also plans to cut executive salaries 10 percent.
The job cuts are Applied’s latest effort to deal with a slowdown in the chip equipment market, caused by weak computer sales and the economic crisis in Asia. The firm already has reduced temporary workers and shut its operations on certain days to cut costs.
“The industry’s in bad shape. We keep looking for the light at the end of the tunnel, but it’s still dark,” said Phil Schettewi, chief portfolio strategist for Loomis Sayles & Co. in Washington, which owns Applied Materials shares.
