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Micron Technology Plans Layoffs After Disappointing Quarter

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Photograph by Tomohiro Ohsumi — Bloomberg via Getty Images

(Reuters) – Memory-chip maker Micron Technology reported third-quarter revenue below analysts’ estimates, forecast a surprise loss for the current quarter and said it is implementing a plan to lower costs, including by focusing on fewer projects and cutting jobs.

The company’s shares (MU) tumbled 9.3% to $12.46 in extended trading on Thursday.

Micron, which faces stiff competition from rivals such as Samsung, has been suffering as weak demand for personal computers pulled down the prices of its chips in the last few quarters.

The company’s net sales fell 24.8% to $2.9 billion in the quarter ended June 2, missing analysts average estimate of $2.96 billion, according to Thomson Reuters I/B/E/S.

Micron forecast fourth-quarter adjusted loss of 16-24 cents per share, while analysts were expecting a profit of 3 cents.

The company did not specify how many jobs it was cutting, but said the cost savings program would save about $80 million per quarter from the next fiscal year.

Net loss attributable to Micron in the third quarter was $215 million, or 21 cents per share, compared with a profit of $491 million, or 42 cents per share.

On an adjusted basis, the company lost 8 cents per share. Analysts had expected a loss of 9 cents per share.