History (1998): Imation to Layoff 1,700

With financial results falling far short of the company’s hopes, Imation will take severe steps in its second reorganization in less than 6 months, the first dating back to last October.

The result is that a total of 1,700 employees out of the 9,800 strong workforce will leave the company before the end of 1998.

A number of subsidiaries will be axed in Europe. All that will remain are the UK, Germany, France, Italy and Spain. The other markets will be served by existing or new distributors.

Imation also intends to sell its CD-ROM business (3M Imation’s chief competitor, Eastman Kodak, could sell off its CD business as well).

Other measures announced:
– realignment and selective reductions of the marketing organization;
– reductions in general and administrative areas;
– reduction and consolidation in ongoing operations at manufacturing facilities, including shifting manufacturing locations for certain product lines, and consolidation of some lab functions; and
– selected reductions of R & D in certain mature business.

This article is an abstract of news published on issue 121 on February 1998 from the former paper version of Computer Data Storage Newsletter.