Business though April was only slightly behind the same period last year, but lighter sales since then have decreased, particularly in the U.S., and future sales forecast looks soft, CEO Greg Booth said.
Zippo's business has been affected by the anti-smoking movement, Transportation Safety Administration regulations and counterfeits.
To help diversify, Zippo wants 50 percent of its products to be unrelated to smoking by 2010.
The layoff was effective June 11.
For years, Zippo was McKean County's largest employer, but last year it was passed by a hospital.
