U.S. chipmaker Micron cuts 10% staff as computer chip demand declines
Category: #business  By Akshay Kedari  Date: 2022-12-22
  • share
  • Twitter
  • Facebook
  • LinkedIn

U.S. chipmaker Micron cuts 10% staff as computer chip demand declines

Micron Technology, the leading memory chip manufacturer based in the United States, has reportedly estimated that the worst industry shortage in over a decade will make it challenging to return to a profitable business in 2023.

The firm announced several cost-cutting initiatives on Wednesday, such as a 10% employee reduction, in an effort to help it withstand a sharp decline in sales. Additionally, Micron forecasted a greater loss than that anticipated by experts for the current quarter, along with a sudden drop in revenues.

According to reports, Micron employed 48,000 people as of September 1. Apparently, Micron employed close to 8,600 people in Singapore as of October 2022, where some of the company's most advanced memory chips are manufactured.

Less than a year into not being able to fulfill the rising demand, semiconductor manufacturers are experiencing a decline in demand for their products. Due to the growing inflation and an unsteady economy, consumers have avoided buying smartphones and PCs. As the primary consumers of memory chips, the manufacturers of these devices are currently stuck with underutilized stocks of chips and are delaying orders for new production.

Micron forewarned that it was reducing output by approximately 20% in consideration of the market conditions last month.

Sanjay Mehrotra, Micron’s CEO, stated that the industry is currently witnessing its worst supply and demand disparity in 13 years.

According to Sanjay, the current time should see a high in inventory, and the rest of the year should see a fall. He further added that customers will shift to better stock levels by mid-2023, and Micron's sales will rise in the H2 of the year.

For the unversed, Micron is narrowing down its budget for new equipment and facilities, and is now anticipating spending between US$7 billion and US$7.5 billion for the fiscal year, down from an earlier aim of up to US$12 billion. It is introducing more sophisticated manufacturing procedures gradually and foresees a decrease in industry spending on new output.

Source credit: https://www.straitstimes.com/business/micron-to-cut-10-of-workforce-as-demand-for-computer-chips-slumps

About Author

Akshay Kedari    

Akshay Kedari

Akshay holds a Bachelor’s degree in computer engineering. Despite having a penchant for software development and the like, Akshay took to writing as a career owing to his passion for the field. Presently, Akshay writes articles for itresearchbrief.com and a few oth...

Read More>>

More News By Akshay Kedari

SMSes from firms without IMDA registration to be marked ‘likely scam’
SMSes from firms without IMDA registration to be marked ‘likely scam’
By Akshay Kedari

SMS messages sent by organizations that are not registered with the Infocomm Media Development Autho...

Fashion chain Uniqlo to raise pay by over 40% for its Japan workforce
Fashion chain Uniqlo to raise pay by over 40% for its Japan workforce
By Akshay Kedari

Uniqlo, a fashion chain based in Japan, has reportedly announced a pay hike for its workforce in Jap...

U.K. food inflation surges 13.3%; prompts concerns over a difficult 2023
U.K. food inflation surges 13.3%; prompts concerns over a difficult 2023
By Akshay Kedari

Recent figures reveal that food price hikes in the U.K. have reportedly reached a new high in Decemb...