Micron to cut 2,850 jobs, slash NAND flash biz
Hard Times Come Again No More
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. ®