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Micron preps Italian job cuts

Micron preps Italian job cuts

Business news |
By eeNews Europe



Italian unions started to protests about possible job cuts in September 2013. The protests came shortly after the sale of Micron’s Avezzano wafer fab to LFoundry GmbH in the middle of 2013 and after Micron’s acquisition of Japan’s Elpida Memory Inc. in July 2013. It is reported that the cuts are part of a 5 percent job reduction plan announced in August 2013.

Micron’s level of staffing in Italy is largely a result of its acquisition of memory company Numonyx NV in May 2010. Numonyx had been a joint venture between Intel and STMicroelectronics and therefore brought a lot of former ST employees into Micron at sites in at Agrate Brianza (Milan), Arzano (Naples), Catania and Avezzano.

According to an Evertiq report, which referenced Italian Ansa as its source the job cuts are set to be 223 in Agrate Brianza; 128 in Catania, 53 in Naples and 17 in Avezzano.

Micron benefited from strengthening memory chip prices in 2013 and swung back into profit. The company made a net income of $358 million on sales revenues of $4.04 billion in its first fiscal quarter of 2014, which ended on Nov. 28, 2013.

The Micron cuts appear to be part of a trend across the semiconductor industry as chip companies return to profit after the global economic collapse post-2008. Several companies including, Intel, Texas Instruments and Renesas Electronics are continuing to cut their workforce as they seek to re-align themselves to changing markets.

Micron was contacted for a comment on the job cuts but had not responded by the time this article was posted.

Related links and articles:

Italian Ansa article

www.micron.com

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