Watch Out Elpida

Micron letter to EC vice president Antonio Tajani - Facebook

Micron letter to EC vice president Antonio Tajani – Facebook

Elpida, the Japanese memory maker bought by Micron last year, will be alarmed by a letter written by Micron’s HR boss to Antonio Tajani, Vice President of the European Union, says David Manners.

Elpida, the Japanese memory maker bought by Micron last year, will be alarmed by a letter written by Micron’s HR boss to Antonio Tajani, Vice President of the European Union.

Tajani had written to Micron’s president and CEO asking for explanations why it was sacking 40% of its Italian workforce and asking for a deferral of the action pending talks.

Instead of Micron’s CEO or president replying, the job was given to Patrick Otte, vp of HR at Micron.

In his letter to Tajani, Otte wrote: “Recently the industry has witnessed a period of significant consolidation. Micron’s acquisition of Elpida Memory last summer is the most recent example of this rationalisation . . . . while Micron’s acquisition of Elpida created the second largest memory company in the world, it created a need to eliminate redundant functions and improve the overall efficiency of our operations in order to endure competitiveness. To both integrate the Elpida acquisition and to help Micron maintain a leadership position in the memory industry, Micron is in the process of concentrating its development, engineering, marketing and sales resources near its fabrication and research and development facilities and the facilities of its customers. The unfortunate result of the industry consolidation of Elpida is that we were forced to make painful decisions across our entire workforce. Naturally, some of our sites have seen a greater impact than others.”

How very true, in a global workforce reduction of 5%, Italy’s workforce was cut 40%.

The message to Elpida is: “You’re next.”

Tags: Elpida, Italy, Japan, memory

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