Business | Technology
Micron Tech will cut 15% of workforce
Micron Technology Inc, the largest US producer of memory chips, said it will cut 15 per cent of its workforce over the next two years and reduce production in an industry glut.
- Bloomberg
- Published: 23:53 October 10, 2008
New York: Micron Technology Inc, the largest US producer of memory chips, said it will cut 15 per cent of its workforce over the next two years and reduce production in an industry glut.
Micron will stop production of flash memory at its Boise, Idaho, headquarters, according to a statement from the company on Thursday.
The company also produces flash in other locations. Micron's Nand flash memory is produced in a joint venture with Intel Corp.
Tumbling prices have driven Micron to losses totalling $1.9 billion (Dh6.98) in the past two years. Memory-chip manufacturers have built too many production lines and are flooding the market with chips that sell for less than they cost to produce.
"We are not immune to the difficult global market conditions," Chief Executive Officer Steve Appleton said in the statement.
Micron had 23,500 employees at the end of 2007. On that basis, the cuts will impact 3,525 positions.
Micron shares rose 14 cents, or 3.6 per cent, to $4.01 on Thursday on the New York Stock Exchange.
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