The company has sufficient manufacturing capacity remaining and does not expect any disruption in product supply required for customer needs.
“We remained hopeful that the demand for these products would stabilize in the marketplace and start to improve as we moved into the spring. Unfortunately, a better environment has not materialized, and we are at a point where we wanted to let our employees and the community know in advance what will occur later this summer,” said Steve Appleton, Micron chairman and chief executive officer.
The company will continue to operate its 300mm research and development fabrication facility at the Boise site and perform a variety of other activities, including reticle manufacturing, product design and support, quality assurance, systems integration and related manufacturing, corporate and general services. These workforce changes were not anticipated or included in the company’s earlier 15% global workforce reduction announcement in October 2008. Following these changes, the company will employ over 5,000 in the state.
Cash restructuring charges will be about $50 million, which will generate a gross annualized operating cash benefit of $150 million. The net operating cash flow effect will be neutral for fiscal year 2009.
The company is committed to assisting employees affected by the workforce reductions and is providing severance and outplacement services.
