Micron to cut 130 jobs

Micron, which has been hit hard by the PC price wars, said the move was part of a restructuring that would allow it to reallocate the resources toward new sales positions. At the same time, the move is part of a strategy to reduce internal costs at Micron (Nasdaq:MUEI).

"Over the past two quarters, we've made great strides toward meeting our business objectives," Kocher said in a statement. "Now, our task is to rev up the sales and marketing engine to renew Micron's growth. Therefore, we are reallocating key resources to drive additional sales and grow market share."

Kocher, who succeeded Joe Daltoso, had earlier made a point of emphasizing the need to improve the company's sales and inventory controls. Kocher, a veteran executive who was once the No.2 executive at Dell Computer Corp. behind Michael Dell, is looking to boost the number of times the company turns its inventory to between 30 and 40 every year.

In February, Nampa, Idaho-based Micron consolidated its worldwide operations and reassigned about 10 percent of its 4,500-strong work force to its parent, Micron Technology Inc. (Nasdaq:MU)

In June, the company reported a sharp drop in fiscal third-quarter net income but said its recovery was on track.

Earnings for the third quarter ended May 28 fell to $5.9 million, or 6 cents a share, from $19.7 million, or 20 cents, in the year-ago quarter.

As part of the restructuring, the company formed three new business units focused on the consumer and small business, commercial and public sector markets. It also increased online sales.

In August the company plans to disclose further details about its new business strategy, it said in a statement.

Micron Electronics stock was up $1.25 at $14.75 in afternoon trading on the Nasdaq. Reuters contributed to this report.