Semiconductor maker Micron announces 10% staff reduction, suspends bonuses

In the latest example of a technology industry slowdown affecting employment, Semiconductor maker Micron announced Wednesday that it would reduce its workforce by 10% in the years to come.

The company's shares fell more than 1%.

According to a recent SEC filing, the company has almost 50,000 employees. Through voluntary departures and layoffs, the company said it would hit its reduction target.

The bonuses will be suspended in the year 2023.

The company said in an SEC filing that it had a restructure plan in place. The restructure plan will result in a 10% reduction in the number of employees over the course of the year.

The restructuring will result in a $30 million charge in the current quarter, as well as less investment into manufacturing capacity and cost cutting programs.

The move came as the company missed analyst estimates for earnings and revenue and forecast a larger loss than expected.

The results of the quarter ending in December were compared to the consensus estimates.

• Loss per share: $0.04, adjusted, versus $0.01 estimated
• Revenues: $4.09 billion versus $4.11 billion estimated

The company expects a loss of 62 cents per share on revenue of $3.8 billion. The analysts were expecting a loss of 30 cents per share.

PC sales have already begun to slow or shrink, while server sales are expected to show little growth in the years to come.

There is too much memory supply and not enough demand which has resulted in the company keeping more inventory and losing pricing power.

According to the prepared remarks, Mehrotra said that there had been a drop in demand.

He expects the company's profitability to be challenged through the end of the year, but that the company expects revenue and free cash flow to recover later in the year. The company said it has stopped share purchases.

Other chip companies have announced freezes or layoffs. Intel said in October that it would lay off workers as part of a plan to cut spending. In the summer, and in November,QUALCOMM and NIGA announced hiring freezes.

After two years of growth and supply issues, it is not the only company adjusting. A potential recession and higher interest rates have led to staff cuts at tech companies.