U.S. memory major Micron announced its first-quarter 2023 earnings on Wednesday (21), with revenue and EPS missing analysts' expectations and a more-than-expected loss per share forecast for the current quarter (second quarter).

At the same time, Micron also announced plans to reduce its workforce by about 10% in fiscal 2023 through a combination of voluntary attrition and layoffs. And suspend the bonus for 2023.

According to government documents, Micron currently has about 48,000 employees. The company announced a restructuring plan to reach its goal of reducing the number of employees by 10% in 2023 through a combination of voluntary departures and layoffs, and also suspended bonuses for 2023.

Micron estimates that the costs associated with the restructuring plan will be $30 million for the quarter, including reduced investment in manufacturing capacity and cost reduction programs.

Micron CEO Sanjay Mehrotra confessed that in the past few months, we have seen a sharp decline in demand, an oversupply of memory and a lack of demand, causing the company to accumulate much inventory and lose pricing power.

He expects the company's profitability to remain challenged until the end of 2023, but revenue and free cash flow are expected to recover later in 2023, and a stock buyback program has also been suspended for now.

In addition to Micron, many semiconductor companies have also frozen hiring or laid off employees. Intel announced layoffs in October as part of a plan to reduce spending by $10 billion; Nvidia and Qualcomm announced hiring slowdowns in the summer and November, respectively.

At the same time, many technology companies, including Meta, Twitter, Tesla, Snap and others, are also announcing layoff plans in succession.