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15 pc of Logitech employees to be jobless soon

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CIOL Bureau
New Update

FREMONT, USA: As more and more corporate houses are struggling hard to cope with the global economic downturn, Logitech International, a provider in computer peripherals and webcams on Monday said that the company would reduce its salaried workforce globally by approximately 15 per cent.

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This decision is taken in addition to the ongoing actions aimed at reducing operating expenses said a press release. The associated restructuring charge will be announced with the company’s Q3 FY 2009 results and booked in the fourth quarter of FY 2009, it added.

Logitech expects that the savings from the restructuring will begin to show in the first quarter of FY 2010. The company also announced that it has withdrawn its Fiscal Year 2009 growth targets for sales and operating income due to the deepening global recession.

“During the December quarter, the retail environment deteriorated significantly. We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand,” said Gerald P. Quindlen, Logitech president and chief executive officer.

“Moreover, we expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn.”

Quindlen further added that the company has a strong cash position, no debt, and is maintaining market share. The Company did not provide revised targets and plans to update investors on business conditions.

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