Semiconductor maker Micron announces 10% staff reduction, suspends bonuses

Semiconductor shaper Micron announced connected Wednesday that it would trim its headcount by astir 10% successful 2023, successful the latest illustration of a exertion manufacture slowdown affecting employment.

Shares of Micron fell implicit 1% successful extended trading.

Idaho-based Micron has astir 48,000 employees, according to a caller SEC filing. The institution said that it would deed its simplification people done voluntary departures arsenic good arsenic layoffs.

Micron besides said it was suspending 2023 bonuses.

"On December 21, 2022, we announced a restructure program successful effect to challenging manufacture conditions," the institution said in an SEC filing. "Under the restructure plan, we expect to trim our headcount by astir 10% implicit calendar twelvemonth 2023, done a operation of voluntary attrition and unit reductions."

Micron said it expected a $30 cardinal complaint successful the existent 4th related to the restructuring, which volition besides see little concern into manufacturing capableness and cost-cutting programs.

The determination comes arsenic Micron reported fiscal first-quarter 2023 results wherever it missed expert estimates for net and revenue, and forecast a larger nonaccomplishment per stock than expected successful the existent quarter.

Here's however Micron did versus Refinitiv statement estimates for the 4th ending successful December:

• Loss per share: $0.04, adjusted, versus $0.01 estimated
• Revenues: $4.09 cardinal versus $4.11 cardinal estimated

Micron said it expected a nonaccomplishment of 62 cents per stock connected gross of $3.8 cardinal successful the existent quarter. Analysts had expected guidance of a nonaccomplishment of 30 cents per stock connected $3.75 cardinal successful sales.

Micron is champion known for supplying representation to machine makers, but it is facing an situation wherever PC income person already started to dilatory oregon shrink, portion server income are expected to amusement small maturation successful 2023.

Micron CEO Sanjay Mehrotra said in prepared remarks that determination is excessively overmuch representation proviso and not capable demand, which has resulted successful the institution keeping much inventory and losing pricing power.

"In the past respective months, we person seen a melodramatic driblet successful demand," Mehrotra said, according to the prepared remarks.

He said helium expects the company's profitability to "remain challenged" done the extremity of 2023 but that the steadfast expects gross and escaped currency travel to retrieve aboriginal successful 2023. Micron said it has suspended stock repurchases.

Micron's restructuring comes aft different semiconductor companies person announced hiring freezes oregon layoffs. In October, Intel announced that it would laic disconnected workers arsenic portion of a program to chopped $10 cardinal successful spending. Nvidia announced a hiring slowdown implicit the summertime and Qualcomm noted its hiring frost successful November.

But it's not conscionable semiconductor companies adjusting aft 2 pandemic-fueled years of maturation and proviso issues. Tech companies including Meta, Twitter, Snap, Stripe, and Tesla person besides chopped unit arsenic companies gird for a imaginable recession and higher involvement rates.