Dec. 23, 2022 /SemiMedia/ -- According to Bloomberg, Micron Technology recently announced a series of cost-cutting measures, including layoffs of 10%, in response to the rapid decline in revenue.

Micron said the worst industry glut in more than a decade will make it difficult to return to profitability in 2023. Micron also expects a sharp decline in sales in the current quarter, with losses larger than analysts had expected.

Micron CEO Sanjay Mehrotra said the industry is experiencing its worst supply-demand imbalance in 13 years. Around mid-2023, customers will shift to healthier inventory levels, and chipmakers' revenues should improve in the second half of the year.

“Profitability throughout 2023 will be challenged as there is an oversupply in the industry,” he said in an interview. “In terms of profitability, the speed of recovery depends on how quickly supply recovers.”

Micron's revenue fell 47% to $4.09 billion in the three months ended Dec. 1. Last month, the company had said it would cut production by about 20% depending on market conditions.