The Channel logo

News

By | Chris Mellor 10th November 2008 15:40

Imation to sack 200 people

Storage vendor chases 10% operating expense reduction

Optical disk and tape media supplier Imation is to cut its operating expenses 10 per cent by the end of 2009 and eliminate 200 staff from its worldwide operations. It's implementing a previously-announced restructuring strategy in the light of poor results.

President and CEO Frank Russomanno said: "Given our year-to-date performance as well as current market and industry conditions it is necessary that we set a goal of aggressively reducing total operating expenses by year-end 2009 to align our business model with our strategic direction.

"We will reduce our operating expenses in excess of ten percent. We will also focus on reducing selling, general and administrative expense by targeting our resources on key accounts and key products, and simplifying our corporate structure globally. At the same time we will continue to invest to re-skill the Company, strengthen our brands and maintain tape technology leadership critical for our future."

Imation is looking to trim $40m annually from its costs. It will absorb up to $40m in restructuring and other charges, $25m of which will be recorded this quarter. That means an operating loss of $11m-$18m for the quarter on revenue expected to be in the range $560m-$580m. Operating income for the whole year is expected to be $5m-$12m, down from the previous guidance of $30m-$37m. ®

alert Send corrections

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust