Move to control the decline in demand for its DRAM products
Memory chip maker Micron Technology has announced plans to cut approximately 2,000 jobs to counter the decline in demand for its DRAM products. The job cuts are in addition to the 15% workforce reduction it announced last October.
Micron said it plans to phase out 200mm wafer manufacturing operations at its Boise, Idaho facility, but said it will continue to operate its 300mm R&D facility.
It expects to incur restructuring charges of approximately $50m and generate a gross annualized operating cash benefit of $150m. The net operating cash flow effect is expected to be neutral for fiscal 2009.
Steve Appleton, chairman and chief executive at Micron, said: We remained hopeful that the demand for these products would stabilize in the marketplace and start to improve as we moved into the spring. Unfortunately, a better environment has not materialized, and we are at a point where we wanted to let our employees and the community know in advance what will occur later this summer.
Last December the company reported a net loss of $706m for the first quarter 2009, against a loss of $262m in the year-ago quarter, on revenue down 9% at $1.4 billion.