Layoffs at Micron roughly double, total workforce reduction now 15%
More job cuts are on the way at Micron Technology. Employees this week learned of an additional 5% workforce reduction in an email from CEO Sanjay Mehrotra. The announcement also indicated the company plans to resume employee pay raises in November, according to a source.
The company announced in December that a semiconductor market slowdown would force it to reduce its approximately 49,000-employee workforce by 10%, through a combination of roughly half layoffs and half attrition. Layoffs began earlier this month.
Micron Spokesman Tate Tran confirmed the total workforce reduction is now expected to be 15% in 2023.
It’s not clear how many positions will be affected at Micron’s Boise headquarters, where the state Department of Labor says more than 5,000 employees work. Micron is the state's largest for-profit employer.
“Some organizations and regions will see higher reductions than this company average, while others will be lower,” Tate wrote.
The company has dozens of office, manufacturing and research facilities worldwide.
Employee raises and bonuses are on pause. The company said executives have taken pay cuts to stabilize the balance sheet as the market for DRAM and other chips resets.
Last year, Micron announced two new manufacturing plants will be built in Boise and near Syracuse, New York; projects propelled by billions in government subsidies via the CHIPS and Science Act.
“Longer-term, Micron continues to see strong underlying secular demand across markets and is sustaining investment in critical technologies and products,” Tate wrote by email.
The company says layoff notices are expected to be fully distributed by the end of February, and positions reduced by attrition will continue through the end of the year.