===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.

===Meta Cuts 600 Jobs in AI Division

Meta Platforms is cutting about 600 jobs in its AI division, according to an internal memo that was viewed by The Wall Street Journal and a person familiar with the matter.

The job cuts will affect the company’s teams focused on artificial-intelligence products, infrastructure and long-term AI research, but won’t touch TBD Lab, the new team that houses most of Meta Chief Executive Mark Zuckerberg’s multimillion-dollar hires, the memo said.

Since the lackluster launch of Meta’s latest Llama large language model in the spring, the company has been on a crusade to reset its AI plans and stay competitive with other leading companies racing to develop cutting-edge AI technology. 

Meta acquired a 49% stake in startup Scale AI and hired its CEO, Wang, to run a newly formed AI division focused on developing so-called superintelligence. Zuckerberg also became the company’s recruiter-in-chief, personally reaching out to prospective AI hires to invite them to his homes for meals and pitches on why they should join his company. Another part of the pitch was lofty multimillion-dollar pay packages.

Meta ultimately managed to poach more than 50 engineers, researchers and other employees from competitors like OpenAI, Alphabet’s Google and Apple. Many of those hires are part of the secretive TBD Lab team at Meta, which has taken over development of the company’s models. 

That team sits near Zuckerberg’s desk at Meta’s Menlo Park, Calif., headquarters and has separate badges to get into their designated section. None of the people on the team were affected by Wednesday’s cuts, according to the memo. 

==Starbucks cutting 900 more jobs

• Starbucks has 360,000 employees and 41,000 locations globally.

Starbucks (SBUX) has announced plans to cut 900 jobs and close 100 locations  in the US and Canada as part of its $100 billion restructuring plan. The news comes just months after the company laid off 1,100 employees in February.

 

 

Estée Lauder Cos. to cut 3,200 jobs

Blaming weak sales in China and duty-free markets, The Estée Lauder Cos. approved 3,200 job cuts. The company signaled it could reduce headcount by another 3,800 with expected restructuring charges of up to $1.6 billion. The restructuring is expected to be completed by the end of 2026.

“The Company now estimates a net reduction in positions of 5,800 to 7,000, including approvals to date. This net reduction takes into account the elimination of positions after retraining and redeployment of certain employees in select areas,” ELC said in a statement. “Approvals for specific initiatives under this restructuring program, in total, are still expected to be completed by the end of fiscal 2026.” 

A Tough Fiscal 2025

The announcement came as part of the new leadership team’s strategic progress and outlook. In fiscal 2025, sales fell 8% to $14.3 billion. Operating margin fell from 6.2% to 5.5%.

“Having closed fiscal 2025 as expected, we remain wholly focused on continuing to execute our strategic vision of Beauty Reimagined with excellence,” said President and CEO Stéphane de La Faverie. “Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years.”

Declines in Most Categories

In fiscal 2025, sales fell in nearly all product categories. Specifically:

• Skincare -12%

• Makeup -6%

• Haircare -10%

• Other -13%

Fragrance sales were flat.

By region, sales fell 4% in the Americas, 12% in EMEA and 7% in Asia Pacific. As noted, ELC blamed the decline on double-digit net sales decline from the Company’s global travel retail business, which is included in EMEA, driven by lower net sales in Asia travel retail, due to ongoing subdued sentiment and lower conversion from Chinese consumers.