According to foreign media reports, semiconductor manufacturer Micron Technology recently announced that it will cut its workforce by about 10% in 2023.

A recent document submitted by Micron Technology to the Securities and Exchange Commission (SEC) shows that the company has about 48000 employees and will complete the layoff plan through voluntary resignation and layoff. Micron Technology also said that it would suspend the bonus payment in 2023.

"On December 21, we announced a restructuring plan to cope with the challenging industry environment," Micron Technology said in the document. "According to the restructuring plan, we expect to reduce the number of employees by about 10% in 2023 through the combination of voluntary resignation and layoff."

Meguiar Light Technology said that it expected that the current quarterly expenditure related to restructuring would be $30 million, including reducing investment in production capacity and cost reduction plans.

Image source: Micron

Micron is famous for supplying memory to computer manufacturers, but the company is facing an environment where personal computer sales have begun to slow or shrink, while server sales are expected to barely grow in 2023.

Sanjay Mehrotra, CEO of Micron Technologies, said that there was too much memory supply and insufficient demand, which led the company to hold more inventory and lose pricing power. "In the past few months, we have seen a sharp drop in demand."

Mehrotra expects that the company's profitability will "still face challenges" by the end of 2023, but the company expects revenue and free cash flow to recover later in 2023. Micron Technology said it had suspended stock repurchase.

Before the reorganization of Micron Technologies, other semiconductor companies have announced the suspension of recruitment or layoffs. Intel announced in October that it would cut jobs; Nvidia announced a slowdown in recruitment in the summer; Qualcomm announced a hiring moratorium in November.