Applied Materials (Nasdaq:AMAT) (AMAT) - Get Applied Materials Inc. Report has informed employees that as of February wages are to be restored to levels prior to 3% to 15% cuts instigated several months ago, TheMarker has learned.
Applied Materials, like many major corporations, took several cost-cutting measures in 2001, including thousands of lay-offs worldwide. None of the 1000 employees of Applied Materials in Israel were affected by the move.
Gilad Almogy, joint-CEO of Applied in Israel, today said that the board decided to return wages to their original levels because it does not foresee an imminent end to the global economic crisis. He explained that had the company's management thought the crisis was winding down, it would have asked employees to "hold their breath" for a quarter or two. "However, it is impossible to apply 'stifling' conditions during a protracted economic crisis."
Almogy did add that despite the decision, the company would maintain the reduced bonus plan decided on several months ago. At the time of the wage cut, the company made a one-time options allotment to all employees worldwide as compensation.
Applied Materials is the leading maker of semiconductors manufacturing and testing equipment and has about 15,000 workers globally.