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.
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