Applied Materials Cuts Jobs

Applied Materials(AMAT Quote - Cramer on AMAT - Stock Picks) plans to cut roughly 7% of its workforce as a result of a reorganization of its chip-equipment business.

The chip-equipment and services company said Tuesday that it expects to eliminate about 1,000 positions through a combination of job cuts and attrition. Applied Materials will record charges of about $20 million on the move, the majority of which to be recorded in the fiscal first quarter ending this month.

The Santa Clara, Calif., company anticipates the cuts will result in annualized savings of $150 million from fiscal 2007 spending levels.

"To better serve our customers, last summer we reorganized our semiconductor equipment business into a single Silicon Systems Group, and we have achieved synergies across this organization as a result," said Mike Splinter, president and CEO, in a statement. "We are focused on improving operational efficiencies and the cost structure of our businesses, as well as enhancing our ability to pursue growth opportunities."

The news comes on the same day that JPMorgan added Applied Materials to its focus list, projecting strong growth in the company's solar panel business.