Dec. 22 (UPI) — Semiconductor company Micron announced Wednesday it will reduce its workforce by 10% next year.
Micron, based in Boise, Idaho, revealed its plans in its Securities and Exchange Commission filing on Wednesday. The company said it will shed the jobs through layoffs and people voluntarily leaving.
The tech company, which has about 43,000 employees said it is suspending bonuses in 2023, as well.
“In connection with the plan, we expect to incur charges of at least $30 million in the second quarter of fiscal 2023, substantially all in cash expenditures,” said the filing, signed by Mark Murphy, Micron’s executive vice president and chief financial officer.
In its fiscal first quarter of 2023, Micron reported that it missed analyst estimates for earnings and revenue and forecast a larger loss per share than expected in the current quarter.
In October, President Joe Biden lavished praise on Micron for its plans to build a $100 billion semiconductor facility in Syracuse, N.Y., calling it one of the most significant investments in American history.
Micron CEO Sanjay Mehrotra said demand has slowed with “too much memory supply.” He said the has led to Micron losing pricing power.
“In the last several months, we have seen a dramatic drop in demand,” Mehrotra said, adding that he expects the company’s profitability to “remain challenged” through the end of 2023 but that the firm expects revenue and free cash flow to recover later in 2023.
