In a move to halt its continuing losses, Rosscomp Corp. said Monday that it has dropped production of one of its principal computer products and laid off nearly one-third of its work force in Costa Mesa.
The 3 1/2-year-old company said 17 of its 55 employees were laid off when it decided to stop making an 8-inch tape drive, a piece of computer "back-up" equipment that records on magnetic tape information that is also recorded on the computer's disc.
The layoffs and product suspension come as Rosscomp struggles to find a place among the myriad of manufacturers of computer memory equipment. The company, which has lost $6.2 million in the last two years, is also struggling to gain its financial footing.
The latest moves, which Rosscomp President Rod Hosilyk estimated would save about $500,000 annually, come on the heels of a $220,000 loan from two principal shareholders and a recent $300,000 private stock sale to the company's Japanese manufacturing licensee.