Amid the adverse industry conditions, Micron, a US-based semiconductor firm has announced to lay off 10 per cent of its workforce by 2023. The choice was made in response to Micron’s first-quarter FY23 performance.
As per a report filed with the US Securities and Exchange Commission (SEC), the company said that, “On December 21, 2022, we announced a restructure plan in response to challenging industry conditions.” It further highlights the company’s restructure plans and the reduction in the headcount by 10 per cent over calendar year 2023 through a combination of voluntary attrition and personnel reductions.
Reportedly, Sanjay Mehrotra, CEO, Micron, also sited that too much supply of memory and lack of demand, as reasons for the company keeping inventory and losing power over pricing.
An IANS report highlights that Mehrotra also said in a statement that, “In the last several months, we have seen a dramatic drop in demand. He also added that, “while the environment remains challenging, we currently expect second-half fiscal 2023 revenue to improve from the first half.”
The microchip maker anticipates spending at least $30 million in the second quarter, all in cash. On $3.8 billion in revenue, the company had anticipated a loss of 62 cents per share for the current quarter.