Jobs go as Syquest faces major losses

Removable cartridge supplier Syquest Technology, faced with mounting financial difficulties, has had to cut its full time workforce of 2,600 by 60 per cent and take a charge of $3 million to $5 million against this quarter's figures.

Sixty jobs will be cut in the US and 1,500 jobs will be cut from Syquest's high-volume manufacturing base in the Far East. The company has also halted plans to expand its factory in Penang, Malaysia.

In a bid to reverse its fortunes, the manufacturer is seeking a new president and chief operating officer. The Californian company said it does not expect to turn in a profit in the second quarter.

For the first quarter ended December 31, 1995, the company reported a net loss of $33.8 million on net revenues of $78.4 million. This compares with net income of $1.9 million on net revenues of $65.9 million for Q1 of fiscal year 1995.