Iomega has laid off 80 North American employees - about ten per cent of its workforce there, the company announced after the New York Stock Market closed yesterday (4PM GMT).
In the Mac market, Iomega manufactures Zip, Peerless, HipZip, Jaz and a portfolio of storage solutions. The company has suffered badly from a decline in demand for its products due to cheaper storage solutions, such as large hard drives and affordable CD-R/RW products.
The cuts affect Iomega employees from Utah, Texas and Toronto. The majority of lay-offs come from the company's operations group. All affected employees will be paid until the end of this year, in addition to their severance package.
Werner Heid, president and CEO said: "We are adjusting our staffing to align Iomega's organization with our refined business focus." In August, Iomega announced plans to cut 35 per cent of its staff in the face of a declining market.
"This workforce reduction will serve to improve our operational efficiencies and positions Iomega with the appropriate resources and skill sets to successfully execute our 2002 strategic business plan," Heid asserted.
Iomega's stock rose 2.34 per cent prior to the announcement yesterday, closing at $7.88. No pre-market trades have been reported on the security. Its stock stood at $19 on December 19, 2000.