Iomega — the company that makes Zip, Jaz, PocketZip, HipZip, and Peerless products, among others — has announced intentions to consolidate their manufacturing operations in Penang, Malaysia.
This means, effective immediately, that its Roy, Utah manufacturing facility will shift from prototyping and low-volume production of Iomega drives and removable disks to prototyping and engineering support. The result is the layoff of approximately 110 workers at the Utah manufacturing facility.
“Our goal in this challenging economic atmosphere is to consolidate our manufacturing capability to improve efficiency and lower costs,” John Conely, senior vice president of operations, said in a statement. “While we recognize the impact on our employees, this move better positions our company for future operations.”
The Penang manufacturing facility, which is owned by Iomega, has functioned as Iomega’s principal manufacturing center for four years. The company’s most recent major product rollout is the Peerless drive, which incorporates hard drive technology in 5GB, 10GB and 20GB capacities.