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* Cuts expected to save at least $140 million * Expected to focus on core chip equipment business * Stock stable after hours (Rewrites first paragraph; adds comment, background) By Noel
Randewich and Chandni Doulatramani Oct 3 (Reuters) - Applied Materials Inc said itwould cut its workforce by between 6 percent and 9 percent toreduce costs as it struggles with a slowdown in
its chipmanufacturing equipment business and troubles at its solar anddisplay groups. The Santa Clara, California, company is implementing avoluntary retirement program and other measures
to eliminatebetween 900 and 1,300 positions, it said in a statement onWednesday. Hurt by slow economies, tepid PC shipments and decliningsales in its non-core display and solar businesses,
AppliedMaterials warned in August that its revenue would fall more thanexpected by analysts. The company has assigned Gary Dickerson, recently appointedpresident of Applied Materials, to
review the effectiveness ofits investments in its different businesses. That could lead Applied Materials to get out of its non-coremarkets to focus on developing more competitive
chipmanufacturing gear, some analysts said. "This is a strong indicator that Gary Dickerson is startingto exert his influence in the company," said Stifel Nicolausanalyst Patrick
Ho. "I think this is the initial move. I don'tthink this is then the only move." By the time the cuts are implemented in the third quarter offiscal 2013, they should save
between $140 million and $190million annually, Applied Materials said. The company expects to record a pre-tax restructuring chargeof between $180 million and $230 million. It will
beginrecording the charges in the fourth quarter of fiscal 2012, withthe remainder during fiscal 2013. Dickerson was previously Chief Executive of VarianSemiconductor Equipment Associates,
which Applied Materialsbought in 2011. Applied Materials' stock was unchanged in after hourstrading after closing down 0.09 percent at $11.16. (Reporting by Chandni Doulatramani in
Bangalore; Editing bySriraj Kalluvila and Andre Grenon) (([email protected])(within U.S. +1 646223 8780)(outside U.S. +91 80 4135 5800)(Reuters Messaging:Reuters
messaging:[email protected])) Keywords: APPLIEDMATERIALS JOBS/