BOISE, IDAHO (AP) – Micron will reduce its workforce by 10 per cent next year and take other cost-cutting measures as the computer memory chip maker struggles to deal with too much supply amid a drop in demand.
Micron CEO Sanjay Mehrotra announced the restructuring during during a quarterly conference call with investors on Wednesday, noting that prices for computer memory products had “deteriorated significantly” in recent months, Boise television station KTVB reported.
The company will cut staff by about 10 per cent throughout 2023 through voluntary departures and layoffs, according to a filing with the Securities and Exchange Commission.
Employee bonuses will also be suspended next year and executive salaries will be reduced for the remainder of the 2023 fiscal year which runs through August, the company said.
The Boise, Idaho-based company has about 48,000 employees across 38 sties in North America, Europe and Asia – including more than 5,000 people in Boise. It has not announced where the layoffs will occur.
In September, Micron announced it was investing USD15 billion through the end of the decade on a new semiconductor plant in Boise expected to create 17,000 American jobs.
The following month, the company announced another semiconductor plant would be built in upstate New York, promising a long-term investment of up to USD100 billion and a plant that could bring 50,000 jobs to the state.
The restructure is not expected to affect those plans.