Samsung Electronics has said it is cutting memory chip production after reporting its slimmest profit since the 2009 global financial crisis, a significant step for the industry after oversupply caused prices to crater.

Operating profit plunged more than 95% to 600 billion won ($455 million) for the three months ended March, missing the average analyst estimate of 1.4 trillion won. Sales fell to 63 trillion won.

Samsung said it would cut memory chip production to a "meaningful level,” a move competitors had been waiting for after a pileup of inventory hurt pricing and profits. The largest maker of memory chips had resisted pulling back in recent months, in part to grab market share from rivals.