The strong state storage trade has been in a well-documented slide for the higher a part of the final yr now. With storage product demand from each the shopper and datacenter companies down nicely off of its highs in a notoriously cyclical enterprise, we have already seen the large three reminiscence producers – SK hynix, Samsung, and Micron – considerably in the reduction of on NAND manufacturing. And now the repercussions of this downturn are beginning to unfold to the SSD makers themselves, with Solidigm confirming that they’ve laid off workers because of the trade downturn.
Responding to an data request from AnandTech, Solidigm, Intel’s former SSD enterprise unit that’s now managed by SK hynix, confirmed that the corporate has not too long ago engaged in layoffs. Terming it a ‘modest’ discount in headcount, the corporate disclosed that it ‘executed a modest workforce discount’ on Wednesday, however declined to supply additional particulars.
“Because of the extended downturn within the semiconductor trade and its influence on market circumstances, Solidigm has executed a workforce discount,” a press release by Solidigm reads. “The corporate is providing assist and severance to colleagues who’re departing. We’re immensely grateful to our group members who’ve made significant contributions whereas at Solidigm. They are going to be significantly missed.”
Solidigm will not be disclosing their new headcount, although as of September, 2022, the corporate had greater than 2,000 workers in 20 areas all over the world. Earlier this yr the corporate closed down its department in South Korea and employed companies to deal with its gross sales within the nation. It appears to be like like the present announcement additionally pertains to varied enterprise, administration, advertising, and gross sales roles.
Solidigm inherited its personnel from Intel’s NAND enterprise unit, which the corporate agreed to promote to SK hynix in October, 2020. Solidigm closed the primary stage of the deal in late 2021 and gained management over Intel’s NAND and SSD companies and NAND reminiscence fab in Dalian, China. Underneath the phrases of the settlement with SK hynix, Intel transferred a few of its NAND enterprise unit workers to Solidigm to function as a SSD enterprise.
At this level there has not been a public announcement of the layoffs by Solidigm/SK hynix, so it stays unclear what the complete influence to the enterprise might be. SK hynix has simply launched its Q3’2023 earnings report, the place the corporate reported internet losses of two.185 trillion received (~1.6B USD), and might be holding its quarterly convention name this night (the morning of the twenty sixth in Korea), at which level we might discover out extra in regards to the firm’s plans for his or her struggling subsidiary. Earlier stories to AnandTech had indicated extra important layoffs had taken place, although ‘modest’ leaves some room for interpretation.
