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Investing.com -- Applied Materials Inc. (NASDAQ:AMAT) stock gained 1.7% in after-hours trading Thursday following an article from Bloomberg reporting the company’s announcement of plans to cut 4% of its global workforce amid a sales slowdown and trade challenges.
The Santa Clara-based chipmaking equipment manufacturer will eliminate more than 1,400 positions from its 36,100 employees as of July, according to Bloomberg, citing a regulatory filing on Thursday. The company described the move as an effort to position itself "as a more competitive and productive organization."
This workforce reduction comes shortly after Applied Materials disclosed that expanded US export restrictions to China would result in approximately $600 million in lost revenue for its fiscal 2026, which runs through October of that year.
In a memo to employees included in the filing, CEO Gary Dickerson stated, "The semiconductor industry is expected to grow tremendously into the next decade, and Applied Materials is shaping a more competitive and productive organization that can scale to meet the opportunities ahead."
The company’s shares responded positively to the restructuring announcement, suggesting investors view the cost-cutting measures as a necessary step to navigate current market challenges.
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