2013-08-14

Business Micron to cut 5% of workforce

Business Micron to cut 5% of workforce

2013/08/14

Micron is to cut up to 5% of its 30,000 worldwide workforce between now and August 2014.

Micron says it will not cut any jobs at its recent, $2.5 billion, acquisition Elpida. That deal completed on July 31st.

The 1500 jobs will be cut by attrition, voluntary retirement and sackings

At the end of May, the company had cash of $2.5 billion.

The Elpida acquisition makes Micron the second largest DRAM manufacturer and the third largest maker of mobile DRAM which is the fastest growing segment of the DRAM market, and is the most profitable segment, and which now accounts for a third of DRAM sales by value.

With the DRAM market now down to three significant players and the flash memory market down to four players, it is expected that prices will rise, capex will fall and the remaining players will be solidly profitable.

In the last ten years, Micron has been loss-making in five of them.


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