Micron announces job cuts due to ‘challenging market conditions’

Micron is preparing itseful for job cuts after posting a loss for its third quarter of 2016.

The Crucial and Lexar parent company generated revenues of $2.9 billion during the quarter ending June 2nd 2016, but made a loss of $215 million.

"Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions," said Micron CEO Mark Durcan.

"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."

The initiatives, which include global job cuts, are expected to save the company over $300 million in fiscal 2017.

On lower revenues, Micron said in a statement: "Revenues for the third quarter of fiscal 2016 were slightly lower compared to the second quarter of fiscal 2016 as increases in sales of DRAM products were offset by decreases in sales of trade non-volatile products.

"DRAM revenues increased in the third quarter of fiscal 2016 as a result of a 22 perc ent increase in unit sales partially offset by an 11 per cent decline in average selling prices.

"Sales of trade Non-Volatile products decreased due to a 10 per cent decrease in units sales and a six per cent decline in average selling prices.

"The company’s overall consolidated gross margin of 17 per cent for the third quarter of fiscal 2016 was three per cent lower compared to the second quarter, primarily due to lower average selling prices partially offset by manufacturing cost reductions."