Applied Materials reportedly to cut more jobs

Semiconductor Business News ^

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Applied Materials reportedly to cut more jobs
By Semiconductor Business News
July 11, 2003 (12:48 p.m. EST)
URL: http://www.eetimes.com/story/OEG20030711S0020

SANTA CLARA, Calif. — Heading into the Semicon West trade show next week, Applied Materials Inc. is planning to cut 2,000 more jobs, including management, according to a Reuters report on Friday (July 11).

The cuts are part of an ongoing effort by Applied to reduce costs. It also represents the first big move made by Michael Splinter, the new chief executive of the chip-equipment giant. In April, Applied named Splinter, a former Intel Corp. executive, president, chief executive officer and a member of the board.

Applied had set plans to cut 3,750 jobs, more than 20 percent of its staff, in its current fiscal year ending in October, according to the report. The expected job cuts are part of that figure, the report said.

"We're probably expecting around 800 to 1,100 [employee] reductions, with a focus on senior management," Banc of America Securities analyst Mark FitzGerald said in the report . "There's no doubt in my mind."

Jay Deahna, the J.P. Morgan analyst, said that 1,400 jobs could be cut in the latest round this month, the report said.

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[7DayRepo]

Do you work at Applied Materials?

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No I don't.

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No I don't.

[LayoutGuru2]

Did you happen to see this one two weeks ago?

Cadence layoffs coming, analysts say
http://www.eedesign.com/story/OEG20030627S0022

Now that Oregon's unemployment rate is up to 8.5%, I wonder if there is any truth to statements I've heard saying that the rate is over 20% for those in the technical fields.

[7DayRepo]

Must be a tough place to work right now, waiting for the axe to fall.

[arete]

Jay Deahna, the J.P. Morgan analyst, said that 1,400 jobs could be cut in the latest round this month, the report said.

Ahhh, that probably explains why they were recently upgraded by one of those pump and dump brokerages. If you can't sell more product, you can always cut jobs to improve the bottom line. Intel must be getting ready to cut too. Their sales will be flatlining soon and along with Dell, have stated that there are no signs of an econonic recovery in IT spending. INTC just got an upgrade today. Humm.

Richard W.

[nwrep]

Now that Oregon's unemployment rate is up to 8.5%, I wonder if there is any truth to statements I've heard saying that the rate is over 20% for those in the technical fields.

I saw that, LayoutGuru. Does not surprise me about Cadence.

That 20% number seems on the high side. There aren't that many unemployed tech people in OR. It is too expensive to live, they just leave the state.

[pttttt]

Check out the company that sells the H-1B Starter Kit.

You'll see a company name you recognize in their list of sponsors.

They could be laying off with one hand and hiring H-1B's with the other.

[Sen Jack S. Fogbound]

I know a guy that works for Applied Materials and I see him about every Sunday at church.

So far he still has his job. I asked him how the layoff blade keeps missing him. He replied that he painted a symbol above his door with Sheep's Blood! LOL

[Drango]

S#!|, just plain S#!|

[sonofron]

"Observers said that despite pouring hundreds of millions into R&D, Cadence's R&D team hasn't developed from scratch a market leading IC design product in over half a decade. "

Maybe they need to downsize a little in order to focus on what they are best at or in order to figure out what is profitable. It's hard to justify paying R&D people who aren't producing the results they want. This is coming from a guy who may be in R&D someday.

[templar]

What does Applied Materials do, and what do the people being laid off do?

[mvpel]

Applies Materials builds the machines used in semiconductor and silicon wafter manufacturing.

Do you remember that commercial that showed various scenes, like in a hospital, a car, etc, with little star-like flashes of light here and there across the screen indicating where the chips are? That was an AMat commercial.

I work in an office just up the road from their HQ in Santa Clara - they're just south of Highway 101 at Bowers Ave.

[Yossarian]

Maybe they need to downsize a little in order to focus on what they are best at or in order to figure out what is profitable. It's hard to justify paying R&D people who aren't producing the results they want. This is coming from a guy who may be in R&D someday.

I used to work in Cadence R&D. The problem isn't the engineers, the problem is the management. Cadence is a mergers and aquisitions company that just happens to focus on the EDA market. It is also run by some of the biggest, least caring about the EE profession jerks in the industry.

I've been out of work for almost a year now, and I have 10 years of experience doing both IC design and creating EDA tools. It's tough and ugly out there, I tell you....

[Yossarian]

I know people that work at Applied Materials (AMAT for short). Before this new guy came in, they had 11 (11!?!) layers of management.

Can you imagine that? If you were a front-line grunt worker with a critical idea or warning that could affect the whole company, you'd have to get the equivalent of a football team to agree, one in a row, that your idea is important and requires attention from the very top.

[Ciexyz]

My sympathies to those who will be losing their jobs.

[Sunnyvale CA Eng.]

What does Applied Materials do, and what do the people being laid off do?

Applied is (or perhaps was) the world's largest semiconductor manufacturing equipment maker. Formerly a $7.3 billion company 2 yrs. ago now about a $4.5 billion company. The people that were let go (headcount down about 45% from peak) were all kinds of engineering/manufacturing/IT/office staff. The Austin, TX facility was also hit hard as well as Santa Clara, CA.

I had worked there in the mid 90's as an R+D engineer and left after I finally got sick of the 80 hour weeks and pressure cooker environment that Applied was (is) famous for.