Memo: "We are planning for the majority of our production processes to run in (China)"
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October 20, 2007
Micron plans to lay off more Treasure Valley workers.
Hundreds more jobs at Micron's SpecTek division in Nampa could be eliminated over the next 6 to 12 months, according to a memo to employees there.
A plant manager said the company is looking at halving SpecTek's hours of operation to 12 hours instead of around-the-clock.
"We are planning for the majority of our production processes to run in (China) rather than the current structure of running in Nampa over the next 6 to 12 months," Manager Mike Jones said in the memo, which was obtained by the Idaho Press-Tribune.
Micron hasn't disclosed how many employees work at SpecTek, but it's a small operation next to MPC Computers on Karcher Boulevard. SpecTek recovers materials from other Micron plants to produce memory products.
Calls to Micron weren't returned Friday.
Since June, Micron has eliminated more than 1,100 jobs in the Treasure Valley. It's the second time in four years Idaho's largest employer has laid off a large part of its work force.
More than 1,000 people were laid off in 2003, but the company eventually rebuilt its employment base back to pre-layoff levels.
This year, company officials have said the latest job cuts are permanent, and they've hinted that more layoffs may be on the way. Executives said they must cut cost to be competitive.
Earlier this month, the company reported a $320 million loss, blaming the loss on falling prices for its memory chips.
Steve Appleton, Micron's chairman and CEO, told analysts that over the next few quarters, the company will keep studying which activities might be outsourced to save money.
Over the next 12 to 18 months, Micron also will continue to evaluate which domestic operations might be moved to Micron plants elsewhere in the world, he said.
"We have to get competitive on total overhead operating expenses," Appleton said at the time.
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