Troubled 3M Corp spin-off Imation Corp says it will be cutting about 1,700 jobs – roughly 17% of its total workforce – in a massive restructuring, originally announced in November (CI No 3,281). Back then, the imaging company said it would be cutting 1,500 jobs. All of the cuts will be completed by the end of 1998, Imation says, with the majority coming in the first half of the year. In addition to the layoffs, Imation will be looking to flog some of its non-strategic businesses, including its $70m CD-ROM business. It will also consolidate its worldwide marketing organization and reduce R&D and administrative spending where it can. Imation has already begun to bite the bullet financially, having taken $199.9m in restructuring charges in its recently completed fourth-quarter (see related story) – $170m of which was related directly to employee separation benefits and fixed asset write-offs. The company says further cash payments associated with the restructuring will total about $100m during the year. The result of all this will be a savings of $35m for 1998, mostly realized in the second half, and $90m annually thereafter.
