Computer memory maker Micron Technology Inc. ( MU ) will cut jobs and spending in response to further weakening demand for electronics and chips. The company posted a sharp drop in sales and a net loss in its most recent quarter.
Micron Technology Chief Executive Sanjay Mehrotra said the company will cut about 10% of its workforce to save money and will cut executive salaries for the rest of the fiscal year.
Mehrotra noted that conditions in the latest quarter have been challenging. The industry is in the throes of its worst supply-demand imbalance in 13 years and profitability will continue to be challenged next year, he said on a conference call with analysts.
Revenue fell by nearly half to $4.09 billion, the Boise, Iowa-based company said, as prices fell for two main types of memory. The company reported a loss of $195 million in its most recent quarter.
The result was below Wall Street analysts' forecasts, according to FactSet. Micron's sales outlook of about $3.8 billion for the current quarter was also lower than expected.
Micron Technology Chief Financial Officer Mark Murphy said on a conference call with analysts that the company will also suspend stock buybacks, though it will continue to pay a dividend.
