Thursday, December 22nd 2022
Micron Reports a Loss for FQ1 '23, Said to be laying off 10 Percent of Workforce
As we're nearing the end of 2022, there is more news about layoffs and this time around it's Micron that is looking at laying off some 10 percent of its workforce. The company announced its FQ1 '23 earnings today, or fiscal quarter one 2023, since not all companies follow the standard year when it comes to financial reporting. Micron saw revenues of US$4,085 billion for the quarter, down from US$6,643 billion in the previous quarter and down from US$7,687 billion the same quarter a year ago. However, the company made a net loss of US$195 million.
Micron's CEO Sanjay Mehrotra stated "Micron's strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn." These decisive actions include cutting 10 percent of its workforce according to Reuters, although this won't take place until sometime in 2023. Micron is also planning a cut in its CAPEX plans for its fiscal 2024, i.e. the company won't be investing as heavily as planned in new fabs, despite being granted money to do so by the US government.
Source:
Micron
Micron's CEO Sanjay Mehrotra stated "Micron's strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn." These decisive actions include cutting 10 percent of its workforce according to Reuters, although this won't take place until sometime in 2023. Micron is also planning a cut in its CAPEX plans for its fiscal 2024, i.e. the company won't be investing as heavily as planned in new fabs, despite being granted money to do so by the US government.
10 Comments on Micron Reports a Loss for FQ1 '23, Said to be laying off 10 Percent of Workforce
Remember the good old days with the PS4 having 16x more ram for the same price? Where is my 512GB of ram for $200 :)
The cost to Micron per chip isn't the same as the cost to a consumer per memory stick.
The company that made the memory stick, had to screen and test the DRAM chips and then produce the memory sticks, which requires additional components, more so with DDR5 than previous types of RAM.
This adds cost and some of the DRAM chips will be considered not suitable and would have to either be used for a lower grade memory stick, or not used at all.
That said, I agree that DDR5 is too expensive still, even though prices have come down significantly in the past few months.
Micron is most likely losing money because of less demand from its customers for both DRAM chips and NAND chips, as the company produces both. The NAND market has crashed over the past year and I would guess this is where the bigger losses are.
What kind of management is this? didn't they needed that people in the first place? did they think demand would magically be there despite all the economic signs?
Seems a bit cowardly to blame the workforce for bad management decisions, and on top of profits.
Everyone will probably have to make adjustments but there should be no surprise tech stocks fall like no others, the management in general is beyond bad, much worst then most other sectors.
"Corporations are like a tree full of Monkeys....
The ones at the top look down & see all those smiling faces, but
The ones on the bottom look up & see all the greedy, disrepectful assholes sh*tting all over them"