Iomega To Cut 450 Jobs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Iomega To Cut 450 Jobs

Iomega Corp. today said it will cut 450 jobs, or 10% of its workforce, as the company combats weak sales of its storage products.

The vendor says it will lose 5 cents to 10 cents per share in its second quarter ending June 27, excluding a restructuring charge. Analysts expected the company to break even for the quarter.

Iomega plans to take a charge in the quarter of about $45 million, which includes facility shutdowns in San Diego and San Jose, Calif. The cost reduction is expected to save about $40 million a year.

Iomega's revenue and earnings have declined as sales of its specialized Jaz drives and media have declined, while core Zip sales have slowed due to component shortages. In addition, the company encountered delays in shipping its recently delivered Click! PC Card Drive for mobile systems.Aaron Ricadela

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Register for InformationWeek Newsletters
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll