Applied Materials is cutting jobs as part of a major shift in its operations. The semiconductor equipment giant confirmed it’s laying off 4% of its workforce — about 1,400 employees — in a move that reflects the industry’s ongoing recalibration amid changing global demand and new trade restrictions.

The company said it began notifying affected employees this week “across all levels and groups.” Applied Materials, one of the world’s largest suppliers of chip manufacturing equipment, currently employs roughly 36,100 people.

In a filing, the company explained that “automation, digitalization and geographic shifts are redefining our workforce needs and skill requirements.” The restructuring, it said, is part of a broader effort to build “high-velocity, high-productivity teams” and create a leaner, more efficient organization, CNBC reported.

Tech Layoffs Hit 92,000 So Far in 2025

Applied Materials isn’t alone in tightening its belt. More than 200 tech companies have slashed nearly 92,000 jobs this year, according to Layoffs.FYI. The layoffs mark the end of the company’s fiscal year and follow a tough few weeks for the semiconductor supplier. Earlier this month, Applied Materials warned that expanded U.S. export restrictions could cost the company about $600 million in fiscal 2026 revenue — news that sent its shares down about 3% in extended trading.

The company expects to take a financial hit from the layoffs, estimating charges between $160 million and $180 million tied to severance and other termination-related costs. Still, executives frame the decision as an investment in long-term competitiveness, saying the changes will help shape “a more competitive and productive organization” better suited to the realities of the modern semiconductor supply chain.