Chipmaker Micron Technology will reduce headcount by 10% and withhold executive salaries for the remainder of FY2023, President and CEO Sanjay Mehrotra told investors during an earnings call yesterday.
“In the last several months, we have seen a dramatic drop in demand,” Mehrotra said on the call. “Micron has responded quickly to reduce our [capital expenditure] and supply output, and we are taking strong enterprise-wide actions to control our expenses.”
As of this morning, WARN notices have not been announced in states where Micron operates.
Mehrotra also said Micron expects its spending to decrease throughout the coming year, driven by reductions in external spending and productivity programs across the business. It’s also reducing select product programs, suspending bonuses and lowering discretionary spending.
“We expect industry profitability to remain challenged through calendar 2023,” Mehrotra said on the call. “The combination of our technology leadership, manufacturing expertise, diverse product portfolio, a strong balance sheet and our decisive actions provide a solid footing to navigate this challenging near-term environment.”
This isn’t the first time Micron has opted to cut spending in recent months. In October, the company said it planned to slash memory chip production spending in FY2023 to cope with an “unprecedented” plunge in demand across all end markets.
Such moves are in contrast to the company’s investment announcements made this fall.
In September, Micron announced it would spend $15 million this decade to expand its operations in Boise, Idaho, and in October said it would invest $100 billion over the next 20 years to build a semiconductor fabrication plant in Clay, New York.