BOISE -- Micron Technology, Inc. has announced plans to cut about 5 percent of its global workforce on the heels of a major corporate purchase.
Company officials say the cuts are designed to optimize its workforce and are not directly related to its buyout of the Japanese firm Elpida.
However, Dave Petso with Petso Financial Consultants in Boise said the buyout likely prompted the handout of pink slips. Petso says letters detailing the cuts have been distributed company wide along with severance package offers.
It appears to be pretty heavy here, Petso said, describing the number of layoffs in the greater Boise area.
Micron spokesman Dan Fransisco confirmed the cuts on Monday morning, saying the reduction would affect less than 5 percent of the company's 30,000 member global workforce through the fiscal year 2014.
That's roughly 1,500 workers.
He says the cuts are coming in the form of workforce attrition, voluntary separation, and reduction, and were announced internally on August 7.
Micron is in the process of continuously assessing its operations to ensure that resources are efficiently and effectively aligned, Fransisco said.
Micron sealed the deal with Elpida on July 31, but had been in talks to buy the company for several years.
Analysts believe the purchase will make Micron the second-largest DRAM maker in the world.
Officials haven't specified how the cuts will affect local workers at Micron's research and design headquarters in Boise.
However, KTVB viewers have shared corporate emails and Facebook messages describing how the layoffs have affected them.
Does Micron expect to rehire any workers? Fransisco says that's a possibility.
If you look at historically what has occurred with the workforce, there have been situations over time where positions change and people do get plugged into other roles, Fransisco said.
Given the competitive and changing nature of the memory industry, Micron is continuously assessing its operations to ensure resources are efficiently and effectively aligned. As such, Micron announced internally Aug. 7 a plan of reorganization to further optimize its global workforce. This action will result in a reduction of less than 5 percent of the company s global workforce through the end of fiscal year 2014.
The company s workforce optimization efforts will involve a combination of attrition, voluntary separation and reductions. The timing, extent and duration of potential workforce changes will vary by organization, geography, function and business needs across the company.
Micron is pursuing this action to ensure that its resources are efficiently and effectively aligned to best address customer needs and maintain the competitiveness of the company. Micron is committed to assisting employees affected by the workforce reductions and is providing severance and outplacement services as needed.