Lam Research Corp., one of the three biggest providers of chip-manufacturing equipment in the US, is cutting about 7% of its workforce to reduce expenses in a declining market.
The company will eliminate about 1,300 jobs worldwide, Chief Executive Officer Tim Archer said on a conference call Wednesday. The overall market for chip equipment will sink to about $75 billion this year, down roughly $20 billion from the prior year, he predicted.
The announcement followed disappointing quarterly results from the Fremont, California-based company and a forecast that came in below analysts’ estimates. Its shares fell as much as 3.3% to $472.5 in late trading.
“This coming year represents a reset in the market and our business,” Archer said. “I’m confident by taking the difficult actions we’ve announced today we’re putting Lam in a stronger position.”
