Micron to cut jobs as earnings disappoint, stock drops
Micron Technology Inc. announced plans for layoffs Thursday along with a disappointing earnings report, sending the company's stock down in late trading. The chipmaker reported a net loss of $97 million, or 9 cents a share, on sales of $2.9 billion for its third fiscal quarter; after adjustments, the company claimed a loss of 8 cents a share. According to FactSet, analysts on average expected an adjusted loss of 4 cents a share on sales of $2.96 billion. "We continue to face challenging market conditions," Micron Chief Executive Mark Durcan said in Thursday's announcement, which included mention of a global workforce reduction. Neither the news release nor a filing with the Securities and Exchange Commission detailed how many jobs will be cut, but Micron did say its cost-reduction plan was expected to save the company more than $300 million in the 2017 fiscal year, roughly $80 million per fiscal quarter. The move is expected to incur charges of about $70 million, according to the SEC filing. Micron shares declined more than 8% in after-hours action, following a 4.3% gain in the regular session.
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