Applied Materials in Kalispell has placed 16 employees in its separation program as the company restructures its work force to compensate for market demand.

The silicone chip manufacturer will continue to employ 544 workers in Montana, including full-time and temporary employees, according to Kevin Winston, head of corporate communications at Applied Materials.

Employees affected by the restructuring will have the opportunity to apply for other positions at the company over the next 60 days. Those who choose not to remain with Applied Materials will be offered severance benefits, Winston said.

He pointed out the restructuring is not a layoff situation because employees can go elsewhere in the company.

“Placing employees in our separation program wasn’t an easy decision, but ultimately it was necessary for us to align our cost structure and head count to remain competitive in the market,” Winston said. “In the semiconductor business there is a very volatile market. We’re always looking for areas to tighten up.”

Winston said the affected employees work in a number of departments within the company.

“We don’t know what the exact number” of affected workers will be, he added. “It could be lower than 16.”

Applied Materials acquired Semitool for $364 million in 2009. The idea was to leverage the strengths of both companies to create a competitive edge in the manufacturing of processing equipment for the semiconductor industry.

The Kalispell operation is part of Applied Materials’ plating, packaging and cleans business unit. The company has had an office at the former Costco building in the Birch Grove community for about 10 years.

Applied Materials delivered its highest operating profit in four years in 2015, according to the company’s annual report. Orders grew by 5 percent to $10.1 billion, and the company posted its highest annual semiconductor equipment revenue in eight years.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com