Applied Materials’ workforce restructuring plan
Applied Materials, Inc.(NASDAQ:AMAT) has put together a plan for rationalization of its work force and for improving its ability to invest for growth. Applied has announced that it is going to undertake manpower reduction actions, one of them being implementation of a voluntary retirement program that will affect 900-1300 were positions, 6 to 9 percent of its global work force.
"Achieving our strategic objectives requires us to deploy our talent in the best way possible," said Chairman and CEO Mike Splinter of Applied. "We are taking action to realign our worldwide organization and workforce while investing in key product development capabilities that will enhance our ability to grow."
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Certain U.S. employees who meet age, length of service and other criteria will be eligible for the voluntary retirement program. The company’s other workforce reduction actions will depend on many factors, one of them being the number of employees opting for the voluntary retirement program.
The workforce restructuring plan is expected to be completed by the third quarter of fiscal 2013. According to company projections, this will free $140 million to $190 million of funds annually for growth initiatives.
Shares of AMAT are down 0.72% to $11.08 in early trade.
NuVasive lowers earlier third quarter forecast
Medical device maker NuVasive, Inc.(NASDAQ:NUVA) late Wednesday lowered its revenue guidance for the third quarter resulting in its shares tanking 34 percent in the opening session.
The company said that they were modifying the forecast as they had lost a large number of customers to competition. Customers were also complaining of innumerable delays and denials by insurance companies when making payments. The company now expects its third quarter revenue to be $147 million, down from its earlier forecast of $155 million. According to Reuters, analysts were earlier expecting revenue of $153.6 million. The company is going to report its third quarter earnings on October 29.
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Shares of NUVA slumped $7.51 or $33.20 to $15.10 in the opening session on Thursday.