On Thursday, Oct. 24, 2025, Applied Materials announced a restructuring that will cut approximately 4% of its global workforce—about 1,400 employees—across all levels and groups. The company said the move is part of a broader effort to streamline operations amid tightening U.S. export controls and a shift toward automation and digitalization. The announcement came in a filing with the SEC, indicating the company is taking a restructuring charge of $160 million to $180 million for severance and related costs.
Applied Materials currently employs about 36,100 full‑time staff, so the reduction represents a significant scale‑down of its workforce. Management cited automation, digitalization, and geographic shifts as key drivers for the change, aiming to build high‑velocity, high‑productivity teams and simplify organizational structures. The company expects the cost savings to improve operating margins and support its long‑term competitiveness in a market facing export‑control constraints.
While the layoffs may impact employee morale and require careful transition management, the restructuring is intended to reduce overhead and align the organization with the company’s strategic focus on advanced manufacturing equipment and services. The move is expected to generate immediate cash‑flow benefits and could position Applied Materials to better respond to evolving customer demands and regulatory environments. Investors will likely view the cost‑cutting initiative as a moderate benefit to the company’s financial health.
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