Applied Materials announces restructuring
October 5, 2012, 2:45 pm TWN
SANTA CLARA, California -- Applied Materials Inc. announced Wednesday a plan to realign its global workforce and enhance its ability to invest for growth.
Applied will implement a voluntary retirement program and other workforce reduction actions that are expected to affect approximately 900 to 1,300 positions, or 6 to 9 percent of its global workforce.
“Achieving our strategic objectives requires us to deploy our talent in the best way possible,” said Mike Splinter, chairman and CEO. “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.”
The voluntary retirement program will be available to certain U.S. employees who meet minimum age and length of service requirements, as well as other business-specific criteria.
In addition, Applied plans to implement other workforce reduction actions globally, the extent of which will depend on the number of employees who participate in the voluntary retirement program and other considerations.
Applied expects to substantially complete the restructuring plan by the end of the third quarter of fiscal 2013, depending on local legal requirements.
Upon completion, the plan is projected to make available approximately $140 million to US$190 million annually to fund key growth initiatives.
Applied expects to incur aggregate pre-tax restructuring charges comprised of severance and other termination benefits in the range of US$180 million to US$230 million, substantially all of which will be paid in cash.