Friday, September 24, 2004

Iomega Cuts Staff

San Diego-based Iomega announced yesterday that it is undergoing a restructuring of the company, and will lay off 145 employees (roughly 25% of the company's workforce). The company is also closing facilities and selling off assets in a bid to regain profitability. The company said that the layoff would affect the company's workforce worldwide. As part of the restructuring, the company also said that it was discontinuing development of its DCT (Digital Capture Technology) drive, which was expected to provide 1.5 Gbyte of storage in a small form factor, as a potential replacement for flash drives. The company's DCT drive was an earlier attempt by the company to rescuscitate the company's sales. The company now says it will focus all of its marketing and sales efforts on its recently introduced REV drive offering.

---