Poor third quarter results by Applied Materials Inc. (Nasdaq: AMAT) has forced it to lay off staff, including at its Israeli subsidiary. Today, after weeks of speculation, assessments, and media reports, Applied Materials president and CEO Michael Splinter has announced measures that include 200 layoffs at Applied Materials Israel, more than had been expected.
Applied Materials declined to comment on the report, since it is closed for the Christmas holiday.
The layoffs were announced together with the publication of the financial report for the third quarter, in which the company's revenue fell 11.3% compared with the corresponding quarter of 2007. Splinter said, "Applied Materials is taking measures to reduce its expenses because of the deterioration in the market conditions."
The cuts include 1,800 jobs worldwide. This is the second wave of layoffs at Applied Materials, following 1,000 layoffs in January, including dozens in Israel.
Applied Materials Israel was established in 1997 on the basis of Opal and Orbot Instruments, which Applied Materials acquired for $280 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2008
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