Micron Set to Lay Off an Additional Five Percent of its Workforce, While Slashing Capex

[TheLostSwede]

It appears things are tougher at Micron than expected, as according to Boise State Public Radio, the company is looking at cutting an additional five percent of its workforce. Back in December, Micron announced it was planning to lay off around 10 percent of its global workforce, which at the time sat at around 49,000 employees, but it appears that cut wasn't enough, as company spokesman Tate Tran has confirmed the total headcount reduction is expected to around 15 percent, although that is for the entire year of 2023. This suggests that there might be several stages of layoffs, unless things improve and demand for Micron's products pick up.

The company is also lowering its capex, not just for 2023, but also for 2024, although the company is expecting more on building new fabs. Micron has already reduced its wafer starts, for both DRAM and NAND flash by around 20 percent. This is all taking place while the company is slowing down its tech node transitions and as such, its 1-gamma note will be moved to 2025. This means that Micron will be stuck at 232-layer 3D TLC NAND for longer than initially planned, which could lead to Micron losing market to its competitors, specifically SK Hynix and Samsung in this case, while allowing other competitors to catch up. Micron will reports is financial Q2 '23 results at the end of March, with previous quarters results indicating that Micron is expecting a drop in revenue of up to US$300 million compared to the previous quarter.



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[Crylune]

Unless the company is going bankrupt... why are layoffs even legal? Complete and utter stupidity.

 

[Denver]

Unless the company is going bankrupt... why are layoffs even legal? Complete and utter stupidity.

To keep shareholders happy.

I don't think it should be illegal for an owner to fire employees from his own company. It would be no different than you not being able to manage your home or bank account.

There is a dangerous trend that you might want to complain about and that is full automation, entirely excluding human labor in virtually any function, depending on how technology advances.

If the focus is always on increasing profit, this is the predictable path.

 

[evernessince]

To keep shareholders happy.

A world driven by making money is world destined for great tragedies.

I don't think it should be illegal for an owner to fire employees from his own company. It would be no different than you not being able to manage your home or bank account.

There is a dangerous trend that you might want to complain about and that is full automation, entirely excluding human labor in virtually any function, depending on how technology advances.

If the focus is always on increasing profit, this is the predictable path.

This is not the best comparison. Your home and bank account are not people that can starve. There are already rules in regards to when you can and cannot fire someone, it's just that in the US those rules are lax and often times people loose not only their pay but their health insurance as well. As an employer, regardless of what the law says, you should consider the health and safety of your employees even if you plan on firing them. If not for compassion of your fellow humans then for the realization is that the world is circular and every action has an equal and opposite reaction.

 

[Why_Me]

Unless the company is going bankrupt... why are layoffs even legal? Complete and utter stupidity.

That makes zero sense.

 

[mb194dc]

No surprise here. The boom and bust from the Covid situation and stimulus is going to be one for the ages!

Hardware and tech generally going to bear the brunt of the first wave of it.

Hardware going to get much, much cheaper, the kicker will be having a job and money still though to pay for it!

 

[trsttte]

Unless the company is going bankrupt... why are layoffs even legal? Complete and utter stupidity.

Why wouldn't they be!? As long as the company pays their dues they're free to do whatever they want. If you want to talk about what those dues are that's a different conversation, but Micron is a business and should run like one.

There is a dangerous trend that you might want to complain about and that is full automation, entirely excluding human labor in virtually any function, depending on how technology advances.

If the focus is always on increasing profit, this is the predictable path.

I don't see how that's dangerous at all. That's been the same old fear since the beginning of the industrial revolution but look at that we're still here but instead of working 7 days a week, with sunday morning off for church, we went to 6 then 5 and soon 4 work days a week. And instead of a lot of repetitive jobs, know we have machines to do the hard part and we get to focus on working smarter and developing more and better machines.

That's how progress works

 

[TumbleGeorge]

That's how progress works

Skybot liked you. In the name of profit. When money is no longer needed. Humans will be targeted for extermination. Only today's billionaires will survive because they are the Skybot masters.

 

[Denver]

Why wouldn't they be!? As long as the company pays their dues they're free to do whatever they want. If you want to talk about what those dues are that's a different conversation, but Micron is a business and should run like one.



I don't see how that's dangerous at all. That's been the same old fear since the beginning of the industrial revolution but look at that we're still here but instead of working 7 days a week, with sunday morning off for church, we went to 6 then 5 and soon 4 work days a week. And instead of a lot of repetitive jobs, know we have machines to do the hard part and we get to focus on working smarter and developing more and better machines.

That's how progress works

You're just parroting the marketing gimmick used to justify automation in a world where there aren't enough jobs left. Quite unlike in the past, in the current situation machines and AI can replace humans in almost any profession, even doctors and programmers.

Must be progress for someone I suppose.

 

[trsttte]

You're just parroting the marketing gimmick used to justify automation in a world where there aren't enough jobs left. Quite unlike in the past, in the current situation machines and AI can replace humans in almost any profession, even doctors and programmers.

Must be progress for someone I suppose.

First we are very very far from that being remotely possible. Then, last time I checked there was a labour shortage so I don't know what you're talking about.

I don't know what you guys want, I for one want to leave in a world where this is possible, there's plenty for everyone and you can just sit and play if that's what thickles your fancy (minus the destroy the planet part of course, but I think you get my point)

 

[thesmokingman]

This is what Darth Powell wants to see, even though he says otherwise lol.

 

[Crylune]

Lmao @ everyone replying to me, these layoffs were completely unnecessary and in no way should a company fire you and threaten your livelihood just because 'they can', absolute late stage capitalistic dystopia we got going on here. If I'm going to work for you and not even receive the full value of my labor in return, said value being pocketed by the top suit, you should at least guarantee a secure living. The least you can do being a completely parasitic entity in a world driven by paper.

That makes zero sense.

How exactly my dude? That would be the only scenario where I can consider layoffs a good thing. I can understand a company going under doing this, but not a major corporation that is nowhere NEAR going under and is doing just fine. It can 100% pay those 5% they just fucked over. But nope, some top exec wanted to spend less money on people's livelihoods and more money on his yachts.

Obligatory tangent aside, the same applies for Microsoft & Google's completely unnecessary layoffs. I'm friends with someone on the Edge Insider team, the lead community manager in fact, and even she agrees these layoffs are complete bullshit for a healthy corporation such as Microsoft.

I will forever consider unnecessary layoffs complete bullshit and I will die on this hill. Defending this bullshit practice is idiotic.

 

[trsttte]

@Crylune cool tirade but there's a vast difference between supporting a layoff and defending it's legality/lawfulness. And who are you to say if they're necessary or not, have you even looked at the financials from Micron, Microsoft or Google besides the revenue on the headlines? I don't defend any layoffs but I won't stand on a high horse like I have the competence to decide if they're necessary or not and much less discuss their legality. Of course it sucks for the workers but let's not dramatize, in this sector they'll get their fat severance packages and easily move on.

 

[ReallyBigMistake]

If Micron goes under all of the ram in the world will be made in Asia with SK making most of it.......
Europe lost all their ram production when Qimonda went under and Japan sold Elpida to Micron when they themselves would go under as well.

How does SK make ram work, it seems it is impossible to sustain it

 

[Fourstaff]

No surprises here, commodity DRAM prices are lower than even pre COVID. It does indicate that Micron's management doesn't believe that the prices will recover anytime soon.

 

[thesmokingman]

It's silly, on CNBC they are always waxing poetic about Micron. But gdamn, there is no money in dram. MU's high was $100 in the 90's, lmao. And this forum, too many layman. MU earnings dropped 47% YOY, and they are guiding for even worse results. WTF do the layman think MU is gonna do, or can do??

 

[sepheronx]

If you think Micron laying off a few people is bad, see what Walmart does. They laid off tens of thousands, then move nearly all their people to part timers only so they don't pay benefits, and then rake in the profits like its nobodies business.

Sometimes a company has to lay off people to sustain itself. It sucks some lose out but it's better than everyone losing out (see Nortel). What is the salt on the wounds is if in the same period, the higher ups who are let go are given one hell of a golden parachute and the CEO's get raises.

 

[fortiori]

But nope, some top exec wanted to spend less money on people's livelihoods and more money on his yachts.

Agree with this point. I wrote the following many years ago:

Many CEOs sit on each others boards and vote themselves higher pay at the expense of their workers and shareholders. Every year their pay packages balloon a little more, with each new high watermark in compensation raising the yachts of all executives (because in CEO land, pay is based on what the other CEOs get) while the boat-less employees get left behind decade after decade. The corporate controlled media then jumps in and trumpets how valuable the executives are based on their completely engineered salaries (because gosh darn it, if the CEOs weren't worth that much they wouldn't be getting paid that much) and people like Jim Cramer jump to their defense like a loaded spring when those stories are challenged for being the propaganda they are.

In 1950 CEOs made 20-1 the average worker. In 1980 it was 42-1. In 2000 it was 120-1. In 2014 it is 204-1.

This did not happen by happy accident.

Beyond that, there is very little in your comments that I agree with for a myriad of reasons, although I do admire your passion, empathy, and resolve.

A man cannot remake himself without suffering—for he is both the marble and the sculpture.

 

[thegnome]

As long as AI doesn't replace all workers (maybe the ones in crappy jobs anyways), I see these layoffs as utter waste of human resources.. Even if you can't use them, it's still wrong to just hire extra and then forcefully lay them off without reason (not even telling them they were hired because of the pandemic).