johnnymk

This is amazing!

http://www.nytimes.com/2007/02/17/bu...th&oref=slogin

SanDisk Will Trim Work Force to Counter Falling Prices

SAN FRANCISCO, Feb. 16 (Reuters) — The SanDisk Corporation said Friday that it would cut 10 percent of its work force and trim executive salaries to compensate for a recent collapse in prices for memory chips, sending its shares down sharply in after-hours trading.

It was the second recent warning about oversupply in the volatile memory chip industry. Micron Technology said last week that prices for memory chips used in consumer electronics would drop 30 percent to 40 percent this quarter.

SanDisk, which competes with Micron’s Lexar division in making flash memory chips for devices like digital cameras and media players, said it expected to cut prices on many products by 30 percent to 40 percent to keep market share.

SanDisk said industrywide prices for NAND flash memory chips had fallen about 50 percent over the last two months because of excess supply and seasonally weak demand in the first part of the year.

Fears of a NAND memory glut have sent shares in its manufacturers sliding. In the last month, Micron’s stock has fallen 11.5 percent while SanDisk is down 9.6 percent.

The company said it would cut about 250 jobs globally, trim executive pay by 10 percent to 20 percent, and freeze other employees’ salaries.