Boise-based Micron Technology is reporting a $225 million loss for the companys third quarter. The loss comes in the face of dropping prices for computer memory chips due to a glut of products on the market.
Due to this Micron CEO Steve Appleton said some job cuts are on the way, although no specific numbers were mentioned.
The financial loss calculates to roughly $.29 cents per share, and sales fell by 1.4 percent to $1.29 billion. This is the second quarter in a row the company has reported a loss.
Chief among concerns in the Treasure Valley, where Micron is the largest private employer, is what the loss means for jobs. We expect to have lower levels of employment, Appleton said during a conference call.
While he failed to elaborate on just how many jobs this will equate to, the statement confirms rampant rumors of across the board layoffs. According to the Micron Web site, the company currently employs 22,600 people around the world.
The last time Micron had mass layoffs was 2003, when 1,800 employees worldwide lost their jobs, including 1,100 in Boise.
Reading between the lines of a press release issued by the company, it appears that Micron is preparing to move some operations overseas in addition to cutting employees.
The company is pursuing a number of initiatives to drive greater cost efficiencies and revenue growth across its operations, the statement read. These initiatives include developing production cost efficiencies closer in location to Microns global customers, evaluating functions more efficiently performed through partnerships or other outside relationships and reducing the companys overhead costs to meet or exceed industry benchmarks. Micron is also exploring opportunities to leverage the companys industry-leading technology and diversified product portfolio to accelerate revenue growth and increase shareholder value. While some elements of these initiatives will be effected immediately, others will take multiple quarters to implement.
In addition to the revenue reports, Micron also announced that chief operating officer Mark Durcan has been appointed president, as well as COO, a position he has held since last year.