Iomega will cut its workforce by 25 per cent and end development of its DCT (Digital Capture Technology) product line in a restructuring aimed at cutting costs and returning to profitability, the company has announced.
The data storage product manufacturer intends to cut 145 jobs worldwide, according to a statement. The cuts will be concentrated on engineering and operations for DCT, its high-capacity, portable hard drive for consumer electronics devices unveiled earlier this year.
According to the statement the company is pursuing the possibility of licensing the technology.
As announced this summer, following disappointing financial results, Iomega plans to continue investing in and build a strategy around its REV removable rigid disk, its portable 35G-byte hard drive can store as much as 90G bytes of compressed data, according to Iomega.
The company also intends to extend its consumer and small business product portfolio.
In addition to job cuts, Iomega plans to move out of some facilities and dispose of some excess assets. The company expects to record restructuring charges of between $5 million and $7 million, mostly in the third quarter, with about $3 million of those charges related to the layoffs.