Shares of Iomega Corp fell more than 14 percent Friday after the information storage device maker announced a second quarter loss and a restructuring that will eliminate up to 1,100 jobs, or one-third of its work force.
Iomega, best known for its Zip storage drive, also said it will move its corporate headquarters from Utah to the West Coast later this year.
The company's new president and chief executive officer, Werner Heid, cited a need to cut costs and to have Iomega closer to other high-tech companies and a larger high-tech labor pool. Iomega has been headquartered in Roy since it was founded in 1980.
The company, which has about 1,200 Utah workers among its 3,300 employees worldwide, announced the move Thursday after reporting a US$35.9 million loss for the second quarter. The company said it would cut 800 to 1,100 jobs by year-end.
"We're working through those figures as we speak, along with the restructuring plan," he said.
Heid said details of the restructuring will be announced in early August. Research and development and associated activities will remain in Utah, although sales and marketing likely will move as part of the headquarters switch, he said.
Iomega is negotiating with officials along the West Coast to determine ``who would most welcome us,'' Heid said.
"Really, what we're intending to do is achieve a closer proximity to other high-tech companies and a larger pool of high-tech workers."
Shares of Iomega fell US$0.28 to US$1.70 in trading Friday on the New York Stock Exchange.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the