===Applied Materials to cut 4% of its workforce as part of automation and operational changes

Applied Materials is cutting about 4% of its global workforce, effective immediately.

The semiconductor company said it is taking one coordinated workforce action as “automation, digitalization and geographic shifts are redefining our workforce needs and skill requirements,” according to a letter to employees, filed with the Securities and Exchange Commission on Thursday.

The company has started notifying employees as of Oct. 23, the letter said.

Applied Materials expects to incur charges of about $160 million to $180 million related to the terminations, and will recognize most of that cost in the fourth quarter. The plan should be completed in the fiscal-first quarter of 2026.

The company plans to continue its focus on “building high-velocity, high-productivity teams, adopting new technologies and simplifying organizational structures” and wants to be “better positioned to scale effectively,” according to the letter.

Applied Materials had 36,100 regular full-time employees as of July 27, according to its latest earnings release from August.