Applied Materials, one of the United States’ leading semiconductor equipment manufacturers, announced plans to lay off around 1,400 employees, or 4% of its global workforce, as part of a broad restructuring to simplify operations and offset the impact of tighter U.S. export controls on chipmaking technology.
The company disclosed the layoffs in a regulatory filing on Thursday, adding that it expects to take a charge of $160 million to $180 million, mostly during the fourth quarter of fiscal 2025. CEO Gary Dickerson said in a memo to employees that the move aims to “simplify decision-making, move faster, and focus on what matters most” as the company prepares for future growth.
The restructuring follows a wave of U.S. measures that restrict sales of semiconductor manufacturing tools to China and other regions accused of helping Beijing bypass export curbs. The new rules have made it increasingly difficult for firms like Applied Materials to deliver equipment, spare parts, and technical support to specific Chinese customers without government licenses.
Earlier this month, Applied Materials forecast a $600 million revenue hit in fiscal 2026 due to the expanded export restrictions. The company employed 35,700 people worldwide as of late October 2024, according to its latest annual report.
Industry analysts said the layoffs underscore the ripple effects of Washington’s semiconductor policy, which has reshaped supply chains and forced U.S. chip equipment makers to reorient toward domestic and allied markets. Despite the cuts, Applied Materials continues to invest in next-generation chip technologies and advanced materials systems as it positions for long-term industry growth.
