Micron Technology (US:MU) said Wednesday it lost $195 million or 18 cents per diluted share for the first quarter of fiscal 2023, compared to a net income of $2.3 billion and a net income per diluted share of $2.04 for the same period last year. In response, the company said it would lay off a significant portion of its workforce and implement supply cuts and expense reductions.

The company attributed the poor results to challenging industry conditions, including the ongoing global chip shortage and rising demand in the tech and automotive sectors.

The company recorded revenue of $4.09 billion for the quarter, a decrease from $6.64 billion in the previous quarter and $7.69 billion in the same period last year. Despite these challenges, Micron expects planned layoffs and other cost cuts to produce higher revenue in the second half of the fiscal year and strong profitability once the downturn passes.

A chip shortage affecting the tech industry in recent years has been caused by many factors, including supply chain disruptions, strong demand for chips in the tech and automotive sectors, and the ongoing pandemic. These factors have led to a shortage of chips and increased pricing pressure, affecting the performance of companies in the industry, including Micron.

Micron designs and manufactures memory and storage chips used in personal computers, data centers, automotive systems, and mobile devices. 

Shares of Micron fell more than 1% in extended trading.