Chip-maker Micron to cut 10% of its workforce

Chip-maker Micron has announced that it will reduce its workforce by about 10 per cent in 2023 in response to challenging industry conditions.

The move comes as Micron reported results for its first quarter of fiscal 2023, which ended on December 1, 2022.

"On December 21, 2022, we announced a restructure plan in response to challenging industry conditions," the company said in a recent US Securities and Exchange Commission (SEC) filing.

"Under the restructure plan, we expect to reduce our headcount by approximately 10 per cent over the calendar year 2023, through a combination of voluntary attrition and personnel reductions," it added.

Moreover, the chip-maker mentioned in the SEC filing that, "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".

In the current quarter, the company said it expected a loss of 62 cents per share on revenue of $3.8 billion.

In prepared remarks, Micron CEO Sanjay Mehrotra explained that there is too much supply of memory and not enough demand, which has resulted in the company keeping inventory and losing pricing power.

"In the last several months, we have seen a dramatic drop in demand," said Mehrotra.

"While the environment remains challenging, we currently expect second-half fiscal 2023 revenue to improve from the first half," he added.

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