Micron plans layoffs after 2nd dismal quarter

BOISE — Micron Technology Inc., a maker of computer memory chips, said Thursday it will cut its work force after posting its second consecutive quarterly loss.

Micron did not say how many of its 22,000 workers will be laid off, but reductions will likely affect Idaho employees as the company moves production closer to customers in Asia, where it does more than 70 percent of its business.

"There will be work-force reductions in certain areas of the business," said spokesman Dan Francisco. "We're trying to remain competitive."

Micron and Intel Corp. have a joint venture, IM Flash Technologies, in Lehi.

Micron also said it will replace Steve Appleton as president, though he will remain the chief executive officer and chairman of the board. Mark Durcan, currently the chief operating officer, replaces Appleton as president, starting immediately.

For the quarter ended May 31, Micron said it swung to a loss of $225 million, or 29 cents per share, after posting a profit of $88 million, or 12 cents per share, in the same period last year. The chip company posted a loss of $52 million in its second quarter.

Micron's performance in the third quarter also fell short of Wall Street's expectations. Analysts polled by Thomson Financial forecast a loss of 24 cents per share.

Revenue fell 2 percent to $1.29 billion from $1.31 billion a year ago, but came in ahead of analysts' average prediction of $1.26 billion.

The company said it was hurt by "severe price declines" in most of its products.

Micron plans to slash its capital expenditures next year to $2.5 billion, from $4 billion in the current year, to help stem losses, Francisco said.

Shares fell 25 cents, or nearly 2 percent, to $12.41 on the New York Stock Exchange, at the close of trading Thursday.