Applied Materials To Cut 1,300 To 1,500 Jobs

SANTA CLARA, Calif. (AP) — Applied Materials Inc. said Wednesday that fiscal fourth-quarter net income fell by 40 percent and announced it would cut 1,300 to 1,500 jobs to save money as it grapples with a business downturn.

The chip equipment maker said the job cuts represent 10 to 12 percent of its global work force and are part of a restructuring plan to save $450 million a year. That's in addition to the $460 million in cost cuts it achieved in fiscal 2009, which ended Oct. 25.

Applied Materials said it expects to take a pretax charge related to its restructuring plan of $100 million to $125 million, most of which will be booked in the first quarter. The job cuts will be completed over the next 18 months.

The company earned $137.9 million, or 10 cents per share, in the quarter, compared with $231.1 million, or 17 cents, in the same quarter a year earlier.

Excluding one-time items, the company earned $177 million, or 13 cents per share, compared with $37 million, or 3 cents.