Semiconductor maker Micron announces 10% staff reduction, suspends bonuses

[liberal N proud]

Semiconductor maker Micron announced Wednesday that it would reduce its headcount by about 10% in 2023, in the latest example of a technology industry slowdown affecting employment.

Shares of Micron fell more than 1% in extended trading.

Idaho-based Micron has about 48,000 employees, according to a recent SEC filing. The company said it would hit its reduction target through voluntary departures as well as layoffs.

Micron also said it is suspending 2023 bonuses.

"On December 21, 2022, we announced a restructure plan in response to challenging industry conditions," the company said in an SEC filing. "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."


https://www.cnbc.com/amp/2022/12/21/micron-announces-10percent-staff-reduction-suspends-bonuses-.html


Here is what I don’t get, car companies can’t finish cars because the can’t get chips, meanwhile the chip companies are cutting production.

Maybe they don’t make automotive chips, if they don’t, why are they not evolving the business?

Companies turn to cutting the moment they are not meeting certain market targets.

I have been a victim of one of these corporate restructuring events.

[ZonkerHarris]

1. wtf semiconductors are the hottest most in demand products in the supply chain right now.

[kimbutgar]

2. But you can bet the top management will get generous bonuses.

While screwing over the workers.

[Lancero]

4. They're not a automotive producer, and it's not really worth the effort for them to expand...

Into being one because the automotive industry tends to lag many generations behind current manufacturing processes.

When a company expands, they generally want to build new facilities based around upcoming processes - Because of how long it takes to build out the facility, by the time it's done that upcoming process will be the new standard.

This is why certain industries got hit so hard by the shortages - The chips they needed are older, and most facilities that produced them had since moved on to newer stuff. Then the silicon shortage hit - Like, the actual silicon needed to produce the chips - and companies that manufactured the silicon wafers started prioritizing higher value contracts.

For comparison, Infineon's current top-line automotive chips are based on a 40 nm process. Their next generation line will be based on a 28 nm process through TSMC. Samsung, meanwhile, is currently taking orders for 3 nm chips. On paper, automotive chips are a high value market... But as far as the big manufacturers are concerned, it's barely worth the cost of maintaining the older equipment.

For a shorter explaination, Micron produces memory chips. Meanwhile, most of the holdup is over processing chips.

[Pobeka]

5. Micron is primarily in the memory chip market, not car chips, or cpus and the like.

If you have a Apple device of any source, Micron probably made the memory chip for it.

Memory chips are entirely different specialty from cpu's and car chips.

[roamer65]

6. Let's see where we go with the CoVID outbreak in China.

I think layoffs are coming big time due to supply chain disruptions.