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Iomega to cut 800 to 1,100 jobs, plans reverse split

SHARE Iomega to cut 800 to 1,100 jobs, plans reverse split

ROY — Iomega Corp., the maker of Zip and Jaz data-storage devices for computers, plans to fire 800 to 1,100 workers and will do a 1-for-5 reverse stock split after the company had a second-quarter loss.

Including $47.1 million in pretax charges, Iomega had a loss of $35.9 million, or 13 cents a share, compared with net income of $40.4 million, or 15 cents, a year earlier. Sales slumped to $184.1 million from $303.6 million a year earlier.

Roy, Utah-based Iomega said if the reverse stock split is implemented, it will reduce the number of shares outstanding to 55 million from 273 million. The company said it's doing the reverse split to encourage more interest in the shares from investors.

Iomega will incur "substantial charges" related to the actions and will discuss the charges during the first week of August the company said in a statement.

Apple Computer Inc., Dell Computer Corp., International Business Machines Corp. and Hewlett-Packard Co. include Zip's features in their personal computers and account for about 50 percent of Iomega's sales, according to Hoover's Inc.

Iomega shares, which had fallen 41 percent this year, rose 3 cents to $1.98. The shares traded as high as $27.56 in mid-1996. Former President and Chief Executive Bruce Albertson resigned in May.