Micron Layoffs:Is Micron laying off employees?

Micron Layoffs

Micron Technology intends to lay off more employees than previously reported. On February 17, 2023, Tate Tran, the company’s corporate public relations manager, verified this.

Boise-based Micron is a maker of semiconductors. In late December, it declared that it would take action in response to a reduced market outlook for 2023. Its “global headcount” was reduced by 10% due to the indicated steps. It also included layoffs and voluntary departures. Micron currently anticipates employment reductions of close to 15%.

According to Tran, the increased amount is the outcome of “our attempt to align programs, timelines, and roadmaps to market conditions. It is still being determined that many employees will be let go from Micron’s Boise headquarters, which is unknown. According to him, some firms and regions will have a higher rate of employee reductions than the corporate average. The employment cutbacks will also consider anticipated attrition through the end of 2023. Let us view this company’s Layoff in detail in the following article.

About the company

In 1978, Micron was established as a semiconductor design consulting company in Boise, Idaho. An American company called Micron Technology, Inc. makes computer memory and data storage. It includes DRAM, flash memory, and USB flash drives. The company’s headquarters are in Boise, Idaho.

Micron is a global pioneer in cutting-edge memory products that transform how people use information. They collaborate with the most reputable businesses in the world. The company has almost 40,000 team members across 17 nations. They provide memory and storage systems for various applications, opening up endless technological possibilities.

Micron bought Lexar, an American company that makes digital media products, in 2006. When COO Mark Durcan was elected President in June 2007, the company underwent another leadership shift. CEO Appleton is the sole occupant of the Lancair IV aircraft. He passed away in a plane crash on February 3, 2012, not long after takeoff from Boise Airport. Shortly after, Mark Durcan succeeded Appleton as CEO and dropped his prior position as President.

Micron went through an acquisition-layoff cycle from 2012 to 2014. It had acquired Elpida Memory and taken a majority stake in Inotera Memories. Through the Elpida acquisition, Micron became a significant supplier to Apple Inc. for the iPhone and iPad. Sanjay Mehrotra was appointed Micron’sMicron’s new President and CEO in April 2017.

When the CHIPS Act was passed, Micron declared its plan to spend billions on new US production. Micron proclaimed in September 2022 that it would spend $15 billion building a new factory in Boise, Idaho. Micron unveiled a $100 billion expansion in Clay, New York, in October 2022.

The Chinese Cyberspace Administration forbade large information infrastructure companies from purchasing Micron goods in May 2023. It cited severe concerns for the country’s national security. The action was seen as retribution for US export limits and sanctions on China’s semiconductor industry.

The critical details of Round 1 of the Micron Layoffs

Micron finally made its layoff announcement after doing so with its Q1 results in December 2022: a 47% year-over-year loss. RIF was 10% as of the information, with 5% coming via attrition throughout 2023 (for around 5000 workers).

In the US, layoffs started in early February and will last until the end of the second week. As per the study, how it works in other nations is still being determined. Some countries, notably the US, wiped out whole squads. Most layoffs were 1:1, and the employees left the building with a box of belongings. Some were done with the HR person and the entire team in one room. Some were mentioned through email. Within an hour of leaving the location, access was restricted.

Internal talk indicated that the team needed to be more secure. In the few months they were there, most underperformers, NCGs, and new recruits who showed a trend toward poor performance were laid off. Also, directors and managers of products that are no longer needed in the future were fired. NCGs and new employees with acceptable performance who had their teams dissolved may be placed in other groups. Due to Biden’s chip restrictions, entire sections in China were cut (it is unconfirmed but likely). No engineer-included processes, equipment, software, etc., and were safe.

The decision-makers are VPs, with help from managers and directors as needed. Managers were all retained for more crucial tasks, and they were asked who to fire.

For people laid off, 60 days plus one week for each year of employment in the US is considered. There were rumours about reportedly no severance. It’s because some employees were outright fired for poor performance. There is no information on whether VISA recipients are retained on the payroll for the full 60 days or if the check was cut.

Layoffs are above the 5% threshold but under 10%, indicating that natural attrition is not performing as intended. Q2: All employees will have access to more information, and more cuts are anticipated just before Q3 ends. Expect more reductions as the DRAM and NAND market forecast is unfavourable. I hope it will begin to normalize in Q3.

Long-term hiring and expansion by Micron in Boise and New York are still being funded primarily by tax benefits and the Chip Act. Offers for internships are being honoured. Also, NCGs hired before the recession are still being employed.

Layoffs at Micron have roughly doubled

At Micron Technology, additional layoffs are anticipated. In February, CEO Sanjay Mehrotra emailed staff about a further 5% personnel cut. According to a source, the notice also stated that the company intends to resume staff pay increases in November.

The business announced in December that a slowdown in the semiconductor market would cause it to cut 10% of its staff or around 49,000 workers. It was done through layoffs and attrition, nearly doubling the reduction. In the first week of February, releases started. According to Micron spokesman Tate Tran, the staff reduction is expected to be 15% in 2023.

It needs to be clarified that Micron’s Boise headquarters may be affected is unclear. The state Department of Labor estimates employing more than 5,000 people here. Most for-profit businesses in the state are used by Micron.

Specific regions will experience more considerable reductions than others compared to this company’s average. This is according to Tate. The company uses many facilities for manufacturing, research, and offices.

Bonuses and pay hikes for employees remain on hold. The business claimed that executives took compensation cutbacks to stabilise the balance sheet as the market for DRAM and other chips reset.

Micron said two new manufacturing facilities would be built in Boise and close to Syracuse, New York, last year. These projects were made possible by the CHIPS and Science Act, which provided billions in government subsidies.

In a statement sent through email, Tate stated that:

“Longer-term, Micron continues to see strong base secular demand across markets and continues to make investment in critical technologies and products.”

The corporation plans to finish the distribution of layoff notices by the end of February. Through the year’s end, positions will still be lost due to attrition.

A 15% reduction in staff would equate to about 7,200 fewer workers globally. The location and method of the cutting could be more precise. If implemented equally, it would result in the termination of about 750 jobs in Idaho. However, the firm has not indicated that the positions will be reduced this way.

Conclusion

Boise State Public Radio first reported the news of the increased layoffs. The initial notice of releases occurred in December of last year due to a decline in demand for its semiconductor chip goods. Micron spokesperson Erica Rodriguez Pompen said, “We now expect staff cuts to approach 15%. It includes planned attrition through the end of the calendar year 2023. It was done as the outcome of our effort to align programs, projects, timelines, and roadmaps to market situations.”

According to Rodriguez Pompen, Micron is also reducing executive pay. Also, bonus payments are being deferred until the end of the fiscal year. According to a source cited by Boise State Public Radio, bonus payments for staff, which are presently suspended, may resume in November.

The Boise-based company Micron performed a ceremonial groundbreaking for a manufacturing expansion at its site as part of a plan that it claims will create a new facility. It has a size comparable to the Pentagon and up to 7,000 new jobs. Additionally, it announced that it would expand its Syracuse, New York, factory. The Boise idea is still in its early phases, but work on obtaining permits has already begun.

People from Idaho who have followed Micron over the years are aware of the company’s careful attention to the supply and demand cycle of semiconductors. Sanjay Mehrotra, the CEO of Micron at the time, stated that there is an imbalance between supply and demand. The corporation no longer has pricing power due to its excessive inventory.

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