Friday, April 28, 2006
Iomega Cuts Staff, Reports Loss
San Diego-based Iomega is cutting staff, as the firm reported a loss for the first quarter, due to lower sales of its Zip, optical, and REV drives. The firm said yesterday that it would cut 75 employees, in addition to 13 positions it already eliminated since the beginning of the year in a bid to reduce costs. The cuts equal 30% of the company's workforce, and is expected to save it $20 to $25M in annual cost savings. Iomega said that it had revenues of $59.1M in the first quarter, and a loss of $4.2M. The firm saw a drop in business in all of its lines except its hard disk drive products. The company's revenues dropped from the $70M it reported in the fourth quarter, and the firm's flagship REV product line dropped to $10.8M in sales from $12.4M in the previous quarter.