SANTA CLARA, Calif. -- Applied Materials Inc. today (March 15) said it will ask up to 1,000 employees to consider leaving the company under a voluntary separation plan. The voluntary severance plan has become necessary because the company said it sees no letup in chip industry's sharp downturn.
The semiconductor equipment giant said offers are being made to employees on a selective basis with the majority of those workers being in Santa Clara and Austin, Tex. Separation pay and benefits are being offered to eligible employees, who choose to quit their jobs.
In February, Applied Materials took actions to cut costs, including a reduction in its temporary workforce, deferred merit pay increases for all salaried employees, 10% cuts in salaries of top executives, restrictions in travel, and five mandatory shutdown days in the current fiscal quarter.
But today Applied said the continued slowdown in semiconductor capital spending requires further actions by the company to lower costs. Details about the voluntary severance package were not disclosed.
Last month, Applied predicted that the chip industry would cut its capital spending by 20% in 2001 (see Feb. 13 story).
