According to CNBC, Micron Technologies, a memory chip manufacturer, announced on Wednesday that it will reduce its workforce by about 10% in 2023, which is the latest example of the slowdown in the technology industry affecting employment.
According to a recent SEC document, Micron, headquartered in Idaho, has about 48000 employees. The company said that it would achieve its emission reduction targets through voluntary resignation and layoffs.
Micron also said that it would suspend the bonus in 2023.
The company said in a SEC document: “On December 21, 2022, we announced a restructuring plan to address challenging industry conditions.” “According to the restructuring plan, we expect to reduce the number of employees by about 10% compared with the 2023 calendar year through the combination of voluntary attrition and layoff.”
Micron Technology said it expected to charge a restructuring fee of $30 million this quarter, which would also include reducing investment in manufacturing capacity and cost reduction plans.
According to the report, Micron Technology is famous for providing memory to computer manufacturers, but it is facing an environment where PC sales have begun to slow or shrink. It is estimated that server sales will not grow much in 2023.
Sanjay Mehrotra, CEO of Micron, said in his speech that excessive memory supply and insufficient demand led the company to maintain more inventory and lose its pricing ability. He predicted that by the end of 2023, the company’s profitability would “face challenges”, but the company expected revenue and free cash flow to recover later in 2023. Micron Technology said it had suspended stock repurchase.
In addition, Reuters reported that Micron Technology announced its earnings on Wednesday, predicting that its revenue in the second quarter would be $3.8 billion, plus or minus $200 million, higher than Wall Street’s estimate. But it predicted a loss of 62 cents per share, plus or minus 10 cents, far higher than analysts’ estimates of a loss of 30 cents.
Meanwhile, Micron Technologies said on Wednesday that its investment in fiscal year 2023 will now be adjusted to $7 billion to $7.5 billion, and it will “significantly reduce capital expenditure” in fiscal year 2024. It invested $12 billion in fiscal year 2022.
Micron Technology’s share price fell more than 1% in the extended trading. So far this year, its share price has dropped by about 45%. As of November 30, Meguiar’s revenue in the first quarter fell by about 47% year on year to 4.09 billion US dollars; The net loss was $195 million, compared with a profit of $2.31 billion a year ago.
CNBC reported that other semiconductor companies had announced a hiring freeze or layoff. In October, Intel announced that it would lay off workers as part of a plan to cut spending by $10 billion. Nvidia announced a slowdown in summer recruitment, and Qualcomm announced a hiring freeze in November. At the same time, many technology companies, including Meta, Twitter, Tesla and Snap, are also announcing layoff plans.
Post time: Dec-22-2022