Now SanDisk is cutting jobs to cut costs

Now SanDisk is cutting jobs to cut costs

SanDisk Corp. is the latest tech company to have announced their plans to cut jobs to attain back profitability.

The company announced their decision to cut 10 percent of its work force. SanDisk would also be trimming the salaries of their salaries to compensate for a recent collapse in prices for memory chips.

This announcement hit the company’s share at the stock market as the prices went down by almost 5%.

Micron Technology Inc. is another tech company which is suffering due to falling prices of memory chips. They said recently that the prices for memory chips used in consumer electronics would drop 30 percent to 40 percent this quarter. This would hit their profits massively.

SanDisk Chief Executive Eli Harari said in a statement on this announcement: “Although we believe there will be strong pickup in demand for our products in the second half of the year, we do not have visibility as to when the current aggressive pricing cycle will run its full course.”