Micron Technology will lay off 10% of its workforce early next year after a lower-than-forecasted quarterly loss.
“Due to the significant supply demand mismatch entering calendar 2023, we expect that profitability will remain challenged throughout 2023,” said Sanjay Mehrotra, CEO of the chipmaker.
The company’s shares have fallen around 45% this year due to obstacles that continue to impact the economy, including inflation, interest rate hikes, global crises, Covid-19 lockdowns and supply chain issues.
As a result of these anticipated losses, Micron adjusted its investments in fiscal 2023 from $7.5 billion to $7 billion after investing $12 billion during fiscal 2022.
“The message overall is very much status quo,” said Matthew Bryson, analyst at Wedbush Securities. “There’s no sign that memory is yet recovering from declining fundamentals, but Micron is also continuing to work to create a better future supply demand dynamic.”
