Micron Technology, the Boise-based manufacturer of memory chips, said Thursday it plans to cut jobs to save money as sales have declined.
The layoffs and other cost-cutting measures will save about $300 million in the 2017 fiscal year, the company said.
The company is cutting about 7.5 percent of its total workforce of 32,000.
About two-thirds of those cuts — or 1,600 jobs — will be layoffs of existing employees, a Micron spokesman said.
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The other one-third consists of about 800 open positions the company will not fill.
Micron employs about 6,000 people in Boise.
Micron’s strategy is not changing, but the company needs to make adjustments in the business to address the current market environment and strengthen its financial position.
Micron spokesman Dan Francisco
The company did not specify which types of jobs are being cut, or where they are located.
The announcement came as the company was reporting a quarterly net loss of 21 cents per share, compared with a profit of 42 cents per share last year at the same time. The loss was worse than analysts expected, according to Bloomberg.
Micron’s stock price fell by as much as 11 percent in after-hours trading, according to Bloomberg.
“Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions,” Micron CEO Mark Durcan said in a statement, according to Bloomberg. “To address the current market environment and strengthen our competitive position, we are implementing a number of initiatives to reduce costs, drive greater efficiencies, and increase focus on our strategic priorities.”
Durcan took a $2 million pay cut in 2015, as the company’s profits fell to $2.88 billion from $3.04 billion. The Micron CEO volunteered for a 50 percent cut to his base-salary, which was equivalent to about 5.5 percent of his total compensation.