Micron Technology(US:MU) Xi Niu Cai Jing·2025-08-19 07:41Core Viewpoint - Micron Technology (NASDAQ: MU) unexpectedly initiated layoffs in China despite being on an upward performance trajectory, focusing on optimizing its workforce in embedded R&D, testing, and support teams in cities like Shanghai and Shenzhen [2] Group 1: Layoff Details - Micron has started a "personnel optimization" process in China, affecting over 300 employees who have received voluntary separation compensation packages [2] - The layoffs are specifically targeting the mobile NAND product line, while SSD, automotive, industrial NAND, and mobile DRAM businesses will continue to receive investment [2] Group 2: Strategic Shift - The company has decided to halt all future mobile NAND product development, including the planned UFS 5.0, as the mobile NAND market has become highly competitive with weak smartphone demand leading to thin profits [2] - Micron stated that resources must be reallocated to higher-return areas such as data center and automotive storage sectors [2] Group 3: Financial Outlook - On the same day as the layoffs announcement, Micron raised its Q4 FY2025 revenue guidance from $10.7 billion to $11.2 billion, with gross margin expectations increasing from 42% to 44.5% [2] - The increase in financial outlook is primarily attributed to soaring prices of high-bandwidth memory (HBM) driven by AI demand [2]