Applied Materials (AMAT) is cutting 4% of its workforce, approximately 1,444 positions, despite shares rising over 40% YTD. The company will incur charges of $160 million to $180 million for severance payments. CEO Gary Dickerson cited automation, digitalization, and geographic shifts as reasons for the workforce reduction. AMAT faces challenges due to expanded export restrictions, resulting in a projected $600 million revenue hit for fiscal 2026. Despite workforce cuts, AMAT reported record third-quarter performance in fiscal Q3 of 2025. Analysts forecast revenue growth and earnings expansion for AMAT stock in the coming years.

Read more at Yahoo Finance: This Chip Stock Is Cutting 4% of Its Staff Despite 40% YTD Pop. Should You Stay Far Away or Buy Shares Now?