Micron Technology plans to cut about 500 workers in its Boise, Idaho 200mm wafer plant and may lay off as many as 2,000 workers by the end of its fiscal year.
In a statement, Micron Technology, one of the largest DRAM players, said it is responding to "deteriorating economic conditions and decreased demand" for its 200mm memory products.
The company also added that it has sufficient capacity and can meet customers' supply needs.
CEO Steve Appleton said:
We remained hopeful that the demand for these products would stabilize in the marketplace and start to improve as we moved into the spring. Unfortunately, a better environment has not materialized, and we are at a point where we wanted to let our employees and the community know in advance what will occur later this summer.
On the bright side, Micron will keep its Boise roots and operate its 300mm R&D facility. It will also keep its quality assurance, design, and general services units in Boise.
Micron has already cut 15 percent of its workforce. For its first quarter ending Dec. 4, Micron reported a net loss of $706 million, or 91 cents a share, on revenue of $1.4 billion.