Lam Research Corp. shares declined in the extended session Wednesday after the silicon-foundry equipment supplier said it would cut its workforce by 7% while increasing the portion it spends on R&D, as a big drop in memory-chip demand sours its outlook.
The Fremont, Calif., company said it plans to reduce its global workforce by 1,300 employees by the end of March, which does not include a separate 700-person reduction to its “temporary workforce” who was let go at the end of December.
The layoffs come following a big personnel buildup during the COVID-19 pandemic. Lam reported having 17,700 employees this past August, a 65% increase from the 10,700 positions it reported in August 2019.
