Expects savings from the restructuring in the first quater of 2010
Mouse and keyboard maker Logitech has announced plans to reduce its salaried workforce globally by approximately 15% in a bid to reduce operating expenses.
The Switzerland-based company has approximately 3,500 salaried employees in its total work force of 9,000. It said the associated restructuring charge is expected to be announced with its third-quarter results and booked in the fourth quarter. It expects savings from the restructuring to begin to show in April 2009.
The company also withdrew its previous fiscal 2009 targets of 6% to 8% sales growth and 3% to 5% operating income growth. It did not provide revised targets but said it will update investors at its third-quarter results briefing in mid-January.
Gerald Quindlen, president and chief executive at Logitech, said: 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. 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.