Subscribe By RSS
Micron Technology To Eliminate 15% Of Its Workforce
By Ron Haruni on October 10, 2008 | More Posts By Ron Haruni | Author's Website
Micron Technology (MU) announced on Thursday a 15% workforce reduction and restructuring of its memory operations. The company said Thursday the combination of declining customer demand and product oversupply in the marketplace has driven selling prices for NAND flash memory way below manufacturing costs. Cost and price are tied together by supply-demand dynamics. As a result, Micron will shut down its NAND flash memory plant operation in Boise.
Of the 2,850 jobs being cut, which will begin with a voluntary program, about 1,500 will be in Boise, Idaho, where the semiconductor co. is headquartered.
“Micron is in a strong position relative to our competitors, as evidenced by our balance sheet and cash flow, but we are not immune to the difficult global market conditions that are affecting us all,” said Steve Appleton, Micron Chairman and CEO. “Operation shutdowns and related workforce reductions are always painful, but we are pursuing these actions to maintain the competitiveness of the company.”
Micron said it expects cash restructuring and other related expenses to be approx. $60 million related to the job cuts. The next year’s cash operating margin benefit is expected to exceed $175 million.
The job cuts, according to the company, will take place over the next two years. Micron shares closed at $3.99, up $0.11 in the NYSE.
Subscribe by RSS 
Subscribe by Email
Email This Post To A Friend
The Simplest Reason Gold Will Soar 
Despite Recession, Innovation Is Alive And Well - Video: Euro Rises On Central Bank Speculation
- What Is Ron Paul’s Real Agenda When He Talks About Auditing The Fed
Physical Gold, Silver And Oil Out-Performing Their Stocks?
- Bay Street Stocks Remain Slightly Above Unchanged Levels - Canadian Commentary - 20 mins ago
- Stocks Attempting To Hold Onto Gains In Mid-Afternoon Trading - U.S. Commentary - 1 hr ago
- European Markets Rise, Led By Commodities, Banks - European Commentary - 2 hrs ago
- Stocks Moving Off Highs But Holding Onto Notable Gains - U.S. Commentary - 2 hrs ago
- Bay Street Market Gains More Than 1% - Canadian Commentary - 3 hrs ago
Since the retrenchment is 15% worldwide, will there be a retrenchment done in MSA (Micron Semiconductor Asia) in Singapore. If not, why is that so……..