1. Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

Micron Responds to Continued Decreases in Demand, More People to Lose Their Jobs

Discussion in 'News' started by malware, Feb 24, 2009.

  1. malware New Member

    Joined:
    Nov 7, 2004
    Messages:
    5,476 (1.51/day)
    Thanks Received:
    956
    Location:
    Bulgaria
    Deteriorating economic conditions and decreased demand for 200 millimeter (mm) specialty DRAM products have created additional challenges for Micron Technology, Inc.’s Boise manufacturing operations. As a result, Micron announced today that it will phase out 200mm wafer manufacturing operations at the company’s Boise facility. This action will reduce employment at Micron’s Idaho sites by approximately 500 employees in the near term and as many as 2,000 positions by the end of the company’s fiscal year. The company has sufficient manufacturing capacity remaining and does not expect any disruption in product supply required for customer needs.

    “We remained hopeful that the demand for these products would stabilize in the marketplace and start to improve as we moved into the spring. Unfortunately, a better environment has not materialized, and we are at a point where we wanted to let our employees and the community know in advance what will occur later this summer,” said Steve Appleton, Micron Chairman and CEO.

    The company will continue to operate its 300mm research and development fabrication facility at the Boise site and perform a variety of other activities, including reticle manufacturing, product design and support, quality assurance, systems integration and related manufacturing, corporate and general services. These workforce changes were not anticipated or included in Micron’s earlier 15 percent global workforce reduction announcement last October. Following these changes, Micron will employ more than 5,000 in the state.

    Cash restructuring charges will be approximately $50 million, which will generate a gross annualized operating cash benefit of $150 million. The net operating cash flow effect will be neutral for fiscal year 2009.

    Micron is committed to assisting employees affected by the workforce reductions and is providing severance and outplacement services.

    Source: Micron
     
    Last edited by a moderator: Feb 24, 2009

Currently Active Users Viewing This Thread: 1 (0 members and 1 guest)

Share This Page