Feeds

Micron to cut 2,850 jobs, slash NAND flash biz

Hard Times Come Again No More

Remote control for virtualized desktops

Micron Technology, the largest memory maker in the US, plans to lay off 15 per cent of its workforce and halt production of NAND flash chips at its Boise, Idaho headquarters.

The company had a rough year in fiscal 2008, posting a net loss of $1.6bn as market overproduction of NAND flash, falling prices, and reduced corporate spending wreaked havoc with its bottom line.

About 2,850 jobs will be cut from Micron's approximately 19,000 workers during the next two years, the company said today.

IM Flash Technologies (IMFT), a joint venture between Micron and Intel, will also discontinue he supply of NAND flash memory from Micron's Boise plant. The shutdown is expected to reduce IMFT flash production by about 35,000 wafers per month.

"Micron is in a strong position relative to our competitors, as evidenced by our balance sheet and cash flow, but we are not immune to the difficult global market conditions that are affecting us all," said Micron CEO Steve Appleton. "Operation shutdowns and related workforce reductions are always painful, but we are pursuing these actions to maintain the competitiveness of the company."

Micron said the majority of layoffs will begin with a voluntary program at its Boise facility. The company added that it's "committed" to providing severance and outplacement services to those affected.

Micron expects the restructuring to cost the memory maker approximately $60m, resulting in next year's cash operating margin to exceed $175m.

Earlier this month, Micron said its senior executives took a 20 per cent pay cut as a result of its poor 2008 fiscal year. ®

Intelligent flash storage arrays

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.