Layoffs, salary cuts, no bonus: What CEO Sanjay Mehrotra has to say on Micron’s tough measures for 2023
US-based semiconductor company Micron has announced that the company will lay off 10% of its workforce. Further, there will be salary cuts for Micron employees as well. During the company’s quarterly earnings call, Micron CEO Sanjay Mehrotra revealed why the company has to go through cost-cutting measures.
In a prepared statement, Mehrotra said that the company projects its spending to decrease through 2023. This will be “driven by reductions in external spending, productivity programs across the business, suspension of a 2023 bonus companywide, select product program reductions and lower discretionary spend,” said Mehrotra.
He further said that executive salaries are also being cut for the remainder of fiscal 2023. Micron will also be reducing its headcount over 2023 by approximately 10% “through a combination of voluntary attrition and personnel reductions,” said Mehrotra.
Around 4,800 employees set to lose their jobs
According to a recent SEC filing, Micron has 48,000 employees, which means close to 4,800 employees would be laid off by the company over the course of the next few months.
Mehrotra said that in the last several months, Micron has “seen a dramatic drop in demand.”
“While the environment remains challenging, we currently expect second-half fiscal 2023 revenue to improve from the first half. We are confident that the broad advantages enabled by data-centric technologies will create long-term growth for our industry, and we expect the total available market to reach approximately $300 billion by 2030,” said Mehrotra during the company’s earnings call.
In an SEC filing, Micron said that the layoffs are a part of the company’s restructuring plans. “Under the restructure plan, we expect to reduce our headcount by approximately 10% over calendar year 2023, through a combination of voluntary attrition and personnel reductions. In connection with the plan, we expect to incur charges of at least $30 million in the second quarter of fiscal 2023, substantially all in cash expenditures,” the company said.
In a prepared statement, Mehrotra said that the company projects its spending to decrease through 2023. This will be “driven by reductions in external spending, productivity programs across the business, suspension of a 2023 bonus companywide, select product program reductions and lower discretionary spend,” said Mehrotra.
He further said that executive salaries are also being cut for the remainder of fiscal 2023. Micron will also be reducing its headcount over 2023 by approximately 10% “through a combination of voluntary attrition and personnel reductions,” said Mehrotra.
Around 4,800 employees set to lose their jobs
According to a recent SEC filing, Micron has 48,000 employees, which means close to 4,800 employees would be laid off by the company over the course of the next few months.
Mehrotra said that in the last several months, Micron has “seen a dramatic drop in demand.”
“While the environment remains challenging, we currently expect second-half fiscal 2023 revenue to improve from the first half. We are confident that the broad advantages enabled by data-centric technologies will create long-term growth for our industry, and we expect the total available market to reach approximately $300 billion by 2030,” said Mehrotra during the company’s earnings call.
In an SEC filing, Micron said that the layoffs are a part of the company’s restructuring plans. “Under the restructure plan, we expect to reduce our headcount by approximately 10% over calendar year 2023, through a combination of voluntary attrition and personnel reductions. In connection with the plan, we expect to incur charges of at least $30 million in the second quarter of fiscal 2023, substantially all in cash expenditures,” the company said.
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