The Santa Clara, Calif.-based company said about 800 of the jobs will be cut at its Silicon Valley operations and another 200 from its Austin, Texas, facility. The remaining reductions will take place at other locations. Employees will be notified starting Tuesday.

"This was a painful but necessary decision to make in order to enable the company to align our operations with the current level of business and position for future growth," said James C. Morgan, Applied Materials' chief executive. The job cuts were necessary even after other cost-cutting measures, he said.

Applied Materials, which supplies products and services to computer chip makers, said it will post a restructuring charge in its fiscal first-quarter results. It did not specify the amount.

In September 2001, the company cut 2,000 positions. At the end of the year, it announced it was cutting another 1,700.

Applied Materials currently has 16,000 employees worldwide.