American chip equipment giant Lam Group announced layoffs of 1,300 people!

Jiweiwang news, according to Bloomberg News, Lam Research Corp., one of the three major chip manufacturing equipment suppliers in the United States, is cutting about 7% of its employees to reduce expenses in a declining market.

The company will cut about 1,300 jobs worldwide, Chief Executive Tim Archer said on a conference call Wednesday. He expects the overall market for chip equipment to drop to about $75 billion this year, about $20 billion less than last year.

The news came after the Fremont, California-based company reported disappointing quarterly results and forecasts that fell short of analysts’ expectations. Shares of the company were down as much as 3.8 percent in late trade to $470.05.

Lam said its chipmaker customers are slowing down production lines, delaying construction of new factories and reducing improvements to existing facilities. Electronics companies that buy chips are stockpiling unused parts that are rippling through the supply chain.

The biggest layoffs came from memory chipmakers, especially NAND-type flash memory makers — a major contributor to Lam’s sales. Chief Financial Officer Doug Bettinger said the company also laid off 700 temporary workers and will reduce an equal number of temporary workers this quarter. Overall, Lam expects costs related to layoffs and facility reductions of $150 million to $250 million.

“The coming year means a realignment in the market and our business,” Archer said.

Lam executives also confirmed their forecast that 2023 revenue would be reduced by $2 billion to $2.5 billion due to U.S. government restrictions on chip technology exports to China.