Mitsubishi Chemical Corp is pulling out of production of floppy disks and will close the production line at its US Verbatim Corp subsidiary later this month. The company still has plans to sell floppies through original equipment manufacturer agreements with other producers. Mitsubishi said the US operation had $150m worth of accumulated losses as a result of falling demand and is expected to make a loss of $20m this year. As a result of the restructuring, 200 workers will be made laid off. With the arrival of re-writeable CDs – and growing file sizes – the floppy has a limited future and Apple did not include a floppy slot in its latest model.
