Applied Materials Plans to Reduce Costs, Slow Hiring

By Kathryn Hardison

Applied Materials Inc. is trying to reduce costs and improve value capture, which includes making further price adjustments, Chief Executive Gary Dickerson said in an earnings call Thursday.

The company, which makes equipment used to create semiconductors, is attempting to battle margin headwinds that come as supply-chain issues make it difficult to meet customer demand.

Applied Materials will also slow hiring in the near term while it ensures its research and development programs are fully funded to support long-term growth, Mr. Dickerson said.

Fiscal-third-quarter profit narrowed to $1.61 billion, and the company said fourth-quarter revenue would likely be $6.65 billion, plus or minus $400 million, including the expected impact of ongoing supply-chain challenges.

Write to Kathryn Hardison at kathryn.hardison@wsj.com

(END) Dow Jones Newswires

August 18, 2022 18:50 ET (22:50 GMT)

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