Micron Technology will cut about 10% of its workforce in 2023

On December 21, Micron Technology announced that it will lay off about 10% of its workforce in 2023. The plan will reduce headcount by approximately 10% in fiscal year 2023 through a combination of voluntary attrition and layoffs. The company expects to incur charges of at least $30 million in the second quarter, mostly cash.

As the demand for DRAM memory has been declining, and it faces fierce competition from rivals such as Samsung in the NAND market. To this end, memory chip maker Micron Technology will lay off staff and reduce projects to reduce costs.

Previously, the storage giant Micron had said that it was taking further actions to deal with the storage market situation, including reducing the production of DRAM and NAND wafers, which will be reduced by about 20% this quarter compared with the previous quarter, and plans to further cut capital expenditures.

Micron CEO Mark Durcan said: "While we have made great progress in deploying our advanced DRAM and NAND technologies, we also face very challenging market conditions."

Micron has been ramping up production of more profitable 20nm DRAM memory chips and has developed more efficient 3D NAND chips.

However, Micron failed to turn things around. Micron's third-quarter sales fell 24.8 percent to $2.9 billion, according to Thomson Reuters I/B/E/S. Sales declines for the current quarter are expected to be between 11.1% and 19.4%.