US-based data-storage component maker Imation is planning to lay off 20% of its work force worldwide, affecting about 215 workers, in a bid to return to profitability.
The firm posted 20% decline in its revenue during the third quarter (Q3) of 2012 to $248.2m in addition to an operating loss of about $6.5m, compared to the corresponding period in 2011.
Imation president and chief executive officer Mark Lucas said that Q3 revenue was below expectations in most product lines and in almost all regions.
"While weak macro-economic conditions were a factor, we are certainly not satisfied with this performance," Lucas said.
"Given our soft results it is now not likely that we will return to total company revenue growth in the near term," added Lucas.
During the quarter, Imation reported revenue declines of about 17% in Americas, 22% in Europe and 17.7% in North Asia, while the highest losses were reported in South Asia, where revenue was off almost 30%.
The firm also revealed that it would reduce its operating expenses by about 25%.
Imation is also planning on restructuring into two business units, as it progresses on data storage and security products.
"First, we are reorganizing into two channel-focused business units; second, we are implementing an aggressive cost reduction program; and finally we will explore strategic options for our consumer electronic brands and businesses," Lucas said.
"These actions will further focus the Company on Secure and Scalable Storage with large, growing markets and higher margins."