Micron gets aggressive with costs, workforce
The pips are getting squeaked at Micron which today proclaimed its intention to fire 10 per cent of its workforce - 1,800 jobs worldwide.
The hard-pressed US DRAM maker says this is one of a "series of cost-reduction initiatives to further capitalize on the Company's aggressive migration to .11 micron manufacturing process technology".
Using the word "aggressive" in connection with lay-offs strikes us somewhat unfortunate.
Micron is to concentrate on making newer, leading-edge, profitable stuff in future.
Last month, the company set in train a $500m bond issue, designed to pay for new manufacturing technology. Up to $80m of the funds are to be set aside for "call spread options", enabling the firm to limit stock dilution by buying its own shares at fixed price. This looked and still looks like a bloody expensive way to build a factory.
Micron's press release is here. ®