Applied Materials, Struggling Against Weak Demand, to Slash up to 1,300 Jobs (AMAT)

By Staff,

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Applied Materials, Inc. ( AMAT ), which makes equipment used to manufacture semiconductors, late Wednesday announced a round of job reductions aimed at improving profitability.

The Santa Clara-based company said it would eliminate between 900 and 1,300 positions across the globe, or about 6% to 9% of its total workforce. AMAT noted it would complete the initiative through a voluntary retirement program and other actions, including layoffs.

CEO Mike Splinter commented, "Achieving our strategic objectives requires us to deploy our talent in the best way possible. We are taking action to realign our worldwide organization and workforce while investing in key product development capabilities that will enhance our ability to grow."

AMAT expects the reductions to free up $140 million to $190 million annually. The excess cash will help fund its efforts to grow its businesses.

Applied Materials shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Applied Materials ( AMAT ) have a 3.23% dividend yield, based on last night's closing stock price of $11.16. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $12-$13 price levels.

Applied Materials, Inc. ( AMAT ) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: AMAT

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