Fierce price competition has forced memory card maker SanDisk to axe 10% of its workforce and cut its boss's pay by a fifth.

Fierce price competition has forced memory card maker SanDisk to axe 10% of its workforce and cut its boss’s pay by a fifth.

The California-based firm has blamed the cost cutting moves on the need to reduce product prices by up to 40% in the face of what it describes as an ?industry-wide? oversupply of NAND components. These are used to make memory cards.

CEO Eli Harari said the current ?aggressive pricing cycle? has hit SanDisk?s gross margins.

Component prices have dropped by 50% in the past two months, he added.

The measures also include a freeze on the salaries of remaining staff.