IOMEGA <IOMG> SETS MANAGEMENT, LABOR LAYOFFS
  Iomega Corp said it has laid off over
  a quarter of its professional and management staff and nearly
  half of its direct labor force as part of a restructuring and
  downsizing of its business.
      The company also said it will receive a qualified opinion
  from the auditors of it 1986 financial statement subject to the
  outcome of two suits. The company is a defendant in a
  consolidated class action law suit which seeks damages in an
  unspecified amount and is also a defendant in a related
  shareholder action.
      Iomega said the auditors state in their opinion letter that
  both actions are in the early stages of discovery and the
  likely outcome can not be determined at this time.
      The company said a corporate wide reduction of its
  professional, management and indirect labor will result in the
  permanent elimination of 183 positions in all functional areas
  of the company's business. This represents over 25 pct of
  professional, management and indirect employees, it added.
      In addition, Iomega announced layoff of about 182
  employees, principally from its manufacturing direct labor
  force. Those affected represent about 46 pct of direct labor.
      Commenting on the layoffs, Iomega said those from among the
  direct labor force affects personnel building the Alpha Eight
  Inch Disk Drive and Bernoulli Boxes.
      "This action is required as we bring our finished goods
  inventory and inventory in our distribution channels down to
  acceptable levels," it explained.
      The company stated this layoff does not affect the
  production of its new 5-1/4 inch Beta 20 product which is
  currently being built to a backlog of orders.