Micron to cut 10% of workforce, suspend bonuses in 2023
Semiconductor manufacturer latest tech company to announce workforce reductions
Biden discusses Micron's plan to invest in CHIPS manufacturing.
Nearly 5,000 Micron employees will lose their jobs following the semiconductor manufacturer’s announcement to reduce 10% of its workforce and undergo a restructuring plan in 2023.
"Due to the significant supply demand mismatch entering calendar 2023, we expect that profitability will remain challenged throughout 2023," Micron CEO Sanjay Mehrotra said in prepared remarks.
The job cuts were announced in the Idaho-based company’s earnings results for the first quarter of fiscal 2023, which ended Dec 1, 2022. Micron said it expects to incur a $30 million charge in the current fiscal quarter related to the job cuts.
Currently, Micron employs 48,000 employees in 17 countries and 29 facilities worldwide, according to the company's website.
The company also said it will suspend bonuses in 2023.
HUNDREDS OF WORKERS LEAVING TYSON AS COMPANY CLOSES OFFICES: REPORT
Sanjay Mehrotra, CEO of Micron, testifies during the Senate Commerce, Science, and Transportation hearing on semiconductors titled Developing Next Generation Technology for Innovation, in Russell Senate Office Building on Wednesday, March 23, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images / Getty Images)
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Mehrotra said Micron "delivered fiscal first quarter revenue and EPS within guidance ranges despite challenging conditions during the quarter."
The company announced revenue of $4.09 billion versus $6.64 billion for the prior quarter and $7.69 billion for the same period last year, while operating cash flows reached $943 million versus $3.78 billion for the prior quarter and $3.94 billion for the same time from last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 99.92 | -4.18 | -4.02% |
"We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn," Mehrotra said. "Micron’s strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment."