With the onset of 2008, Intel started to lay off its units accounting their non-importance in the current and upcoming projects.

As reported two days back, Intel has disclosed its plans to shut NOR flash memory units and NAND flash memory units. Intel runs NAND flash memory unit namely IM Flash Technologies as a joint venture with Micron. The decision to shut the unit has pushed Micron to lay off about 15 percent of its workforce.

This decision is another indication that economic meltdown is taking its toll on some tech companies.

The decision to shut down units and lay off workforce is due to lowered customer demand and product oversupply in the market, cited reports.

The reduction in workforce will occur in a phased manner over the next two years. The cut off will primarily affect people working in the Boise facility.

Due to global crisis, companies related to NAND flash segment has struggled due to oversupply and low prices. In spite of the oversupply, some vendors including Hynix and Samsung have continued to build new factories that make NAND flash products, further intensifying the problem.

Micron expects that restructuring expenses will be about US$60 million.

Renu Singh/ITVoir Network