The largest American manufacturer of memory chips Micron announced massive staff reductions

Due to falling demand for its products, the largest American manufacturer of memory chips Micron Technology Inc. intends to lay off 10% of workers, Bloomberg reported on Thursday.

Consumers have postponed purchases of computers and smartphones amid rising inflation and an unstable economy. Gadget makers - the main buyers of memory chips - are faced with an oversupply of electronic components and reduced the volume of orders for them, the agency explained.

Micron said that the worst oversupply of electronic components in more than 10 years will complicate a return to profitability in 2023. According to the company's report , for the first fiscal quarter of 2023 (ended December 1, 2022 - ed.), Its net loss amounted to $ 195 million

The memory chip maker is also cutting budgets for new plants and equipment, management salaries, and bonus payments. As of September 1, writes Reuters, the staff of Micron consisted of 48 thousand people.

Recall that earlier it was reported about large-scale reductions in workers in Xiaomi, Meta and in Oracle.