Applied Materials Announces Layoffs

Applied Materials Inc. is reducing its global workforce by approximately 2,000 positions, or 15%, as part of a restructuring plan resulting from the downturn in the semiconductor industry. Approximately 750 positions at Applied Materials' Santa Clara operations and 600 positions at the company's Austin operations will be affected. Employees will be notified beginning August 26, 1998. The majority of remaining positions will be eliminated at other locations worldwide by the end of the company's fourth fiscal quarter, which ends October 25, 1998. Additionally, executive salaries will be reduced by approximately 10%.

Since December 1997, the company has instituted a number of cost-reduction programs, including restricted hiring, reduction of the number of temporary workers and contractors, mandatory shutdown days and a Voluntary Separation Plan.

Applied Materials expects the restructuring plan and associated cost estimates to be completed by the end of the fourth fiscal quarter. The company will report a non-recurring charge for the restructuring plan, which will result in a net loss for the fourth fiscal quarter.