More layoffs at Micron as sale looms

Summary:The company will lay off 250 workers as it completes the sale of its PC business to Gores Technology Group.

Micron Electronics on Thursday announced that it would lay off 250 workers as it completes the sale of its PC business to Gores Technology Group.

The company began notifying employees Thursday, according to a short company statement seen by CNET News.com. Micron will give affected employees 60 days' notice, the statement said, and provide severance packages, as well as assistance in finding other employment.

Micron has "agreed to implement an employee restructuring plan. This reduces the work force by approximately 250 employees in order to streamline and align labor resources to the business operating model," the statement read.

Micron said in late March that it would exit the PC business and merge with Web hosting company Interland in a $130 million stock deal aimed at creating a combined Web hosting company. At that time, it laid off 400 employees from its PC business. After this latest round of cuts, Micron's PC work force stands at 1,150.

On May 1, Micron announced that it would sell its PC business to Gores Technology Group.

"Given the realities of the tough PC environment, and our desire to conserve cash to fund our hosting growth strategy, we believe this deal provides the best possible outcome for our shareholders and speeds our path to profitability," Micron Chief Executive Joel Kocher said in a statement announcing the sale in May.

Micron's PC business will become Micron PC and is expected to unveil its plans as a separate company soon. At the time of the sale, executives from the PC business said they didn't expect much immediate change after the sale and would continue to produce PCs for the government, small and medium-sized business, and consumers.

Topics: PCs, Government, Hardware

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