The US chip maker is taking steps to the brakes on costs

After the big smears at the start of the new fiscal year American Semiconductor Corporation «Micron Technology» on the brakes on costs. Investments must be significantly reduced, such as the largest American memory chip manufacturer announced on Wednesday.

In addition to the plans of «Micron Technology» to cut ten percent of about 48,000 jobs. In addition, managers’ wages should be cut and bonuses abolished entirely. The share buyback program has also been suspended. Early in November, the group announced that production would be cut by about 20 percent.

Memory chip companies in particular are currently facing major problems. For example, consumers are reluctant to buy new smartphones, laptops and computers in which it is preferable to install these chips.

Hardware manufacturers themselves sit on high inventories and initially reduce them. Only then will new orders be placed with chip manufacturers. On the other hand, the business of chip companies that rely more on special semiconductors in the automotive and energy industries is doing better. They are even expanding their capabilities to be able to meet the demand.

Micron Technology reported a rapid decline in revenue both quarter-over-quarter and year-over-year in its fiscal first quarter (ended December 1). Revenue fell to about $4.1 billiondollar After 6.6 billion dollar in the previous three months.

The final result was a net loss of 195 million dollar. Further developments look rather bleak. According to the group, it will be difficult to return to profitability in 2023.