The company said severance costs will be between $160 million and $180 million, the majority of which will be recognized in the fourth quarter of fiscal 2025.
The reason for the restructuring was the tightening of US export regulations that limited the supply of equipment and technology to China and other countries. These measures made it difficult to export certain components and services without a special license. Applied Materials previously estimated potential revenue losses of $600 million in 2026 due to new restrictions.
The company had approximately 35,700 employees as of Oct. 27, 2024, according to a company filing. Management said it plans to simplify decision-making processes and improve operational efficiency to prepare for future business growth.
Source: Ferra
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