View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
March 9, 1987


By CBR Staff Writer

Faced with soaring inventories of unsold drives, in particular the obsolescent 8 units, Iomega Corp is initiating a ruthless programme of lay-offs to bring the company back to a size consistent with the current reduced level of business. It is reducing overheads by making a cut of over 25% in professional, management and indirect labour, with 183 positions permanently eliminated in all areas of the Roy, Utah company’s business. Iomega is also laying off about 182 manufacturing employees, 46% of manufacturing staff, covering those building the company’s Alpha 10 8 disk drives and Bernoulli Boxes. Iomega says that the action is required to bring finished goods inventory and inventory in the distribution channel down to acceptable levels. The lay-offs do not affect production of the new 5.25 Beta 20 drives, which is currently being built to fill a back-log of orders. Iomega also said that it will receive a qualified opinion from the auditors of its 1986 financial statements, subject to the outcome of litigation brought by disaffected shareholders seeking damages over alleged inaccurate statements in a class action. Iomega specialises in 8 and 5.25 hard shell floppy disk drives, and scored major commercial success in the IBM Personal market a couple of years ago as demand for a simple back-up system grew. But Winchester capacity on Personals has outrun the capacity of Iomega’s drives, and cartridge tape systems now dominate the back-up market.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.