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.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle
RSS