ROY Call it "Bye-omega."
Iomega Corp. said Thursday its corporate headquarters will be moving from Roy to San Diego, the destination industry experts and company-watchers had predicted three months ago when the company said it would move somewhere along the West Coast.
The company will have about 100 employees in San Diego, with some making the move from Utah and some added to the company. The move is expected to be finished in the next six months.
Iomega will continue to have engineering, research and development and various operations offices in Roy, which the company described Thursday as "the world center of research and development excellence and expertise in removable magnetic storage."
The company wasted no time linking itself with the California city, using San Diego instead of Roy in the dateline of a Thursday press release announcing its quarterly financial report.
Werner Heid, Iomega's president and chief executive officer, said the company needs to encourage a "decentralized, global-thinking and diverse organization that is positioned and empowered to quickly seize opportunities."
"Decentralizing our headquarters is an important step in this direction," he said. "We are also convinced that we will have an easier time attracting and retaining high-tech-oriented sales and marketing personnel and executive staff in Southern California. Further, San Diego is the home of many major technology innovations, which will be important components for future Iomega solutions."
In a conference call with industry analysts, Heid said San Diego will be a place "where we'll not have to ask new people to move to an out-of-state location" and that the company will "take advantage of partnerships and technology expertise that a large community like San Diego offers."
Relocating to San Diego will be corporate, product and Internet marketing; strategic product sourcing; software applications and customer advocacy; plus certain executive staff members and personnel in human resources, legal, finance and information technology.
Heid said the company has signed a lease for San Diego office space and has started the moving process.
Phil Husby, a senior vice president and chief financial officer, said the headquarters move would cost less than $1.5 million.
Iomega said in August it would cut 415 jobs in Utah by year-end as it reduced its overall employee base by 1,250, or 38 percent. Heid said Thursday the overall cuts have totaled 1,234.
That would leave the company with 685 workers in Utah. Earlier in the year, the company cut about 100 jobs in Utah as it consolidated manufacturing at its Malaysian plant.
A corporate headquarters move, or an Iomega acquisition by a larger company, had been speculated in the Roy/Ogden area for years as the company faced financial difficulties.
But picking San Diego was deemed obvious by many Iomega followers. Heid has lived and worked there, and David Dunn, chairman of Iomega's board of directors, lives in nearby La Jolla. Iomega also had a development facility in the area a few years ago, and a San Diego newspaper had reported that Iomega officials this summer had been searching San Diego for enough office space and had met with officials at the City of San Diego Economic Development Division.Roy, with about 33,000 residents, had been Iomega's headquarters city since the company was founded in 1980.
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