Feeds

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

Hard Times Come Again No More

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.