Micron will cut not 10 but 15 of its workforce

Micron will cut not 10%, but 15% of its workforce and reduce capital expenditures in 2023 and 2024

Things have turned out worse for Micron than previously mentioned. In December 2022, the memory chip maker announced it would cut its workforce by 10%. At that time around 49,000 people worked for the company worldwide. How write TechPowerUpin an interview with American radio Boise State Public Radio Micron spokesman Tate Tran confirmed that the company will be cutting about 15% of its workforce overall.

    Image source: Micron

Image source: Micron

Micron will not lay off the specified number of employees immediately, but will do so over the course of 2023. This suggests that the company will implement the downsizing in stages, at least until the situation with demand for its products starts to improve.

The memory maker will also lower its capital costs. Not only in 2023, but also in 2024. Despite this, the company remains focused on increasing the number of its factories. Last month, Micron announced plans to reduce the number of silicon wafers processed each month by 20%. In addition, the manufacturer has slowed down the transition to the new 1γ process technology. It is now expected to be in 2025 at the earliest. This means Micron will have to grapple with 232-layer 3D TLC NAND flash chips longer than previously planned, delaying the transition to more multi-layer chips. Ultimately, this may cause the company to lag behind its main rivals such as SK hynix and Samsung.

Micron will report its second quarter 2023 financial results in March. The memory chip maker is currently forecasting a $300 million drop in revenue from the previous quarter.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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