Iomega abandons Zip and DVD lays off 120

Looks
like Iomega is in the process of making some sweeping changes. Long gone are the glory days of the Zip disc and a day or so before the posting of second quarter results, they are announcing some new business plans.

According to a statement released today, Iomega intends to "realign its product lines" and lay off 120 of its 360 employees. While the company declined to comment on details, a statement said that Iomega will focus on harddrive-based products, as well as its NSS and Rev series. Apparently, the future product strategy does not include CD/DVD burners and the product Iomega's success is built on: The famous Zip drive.

I don't see in this plan other than the layoffs, how this will generate more income or soothe investors. It seems like more of a downsizing than anything else. But they claim the plan will return them to profitability, time will tell. You can Visit Tom's Hardware for some financial figures for Iomega.

Source: Tom's Hardware