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Logitech cuts staff and scraps 2009 forecasts

Microscope contributor


Peripherals specialist Logitech has announced plans to cut15% of its workforce and has withdrawn its 2009 fiscal year targets.

 

The global recession was blamed by Gerald Quindlen,president and CEO of Logitech, for the decision to make the cuts and changes.

 

"During the December quarter, the retail environmentdeteriorated significantly," he added in a statement "We experiencedvarying degrees of weakness across all geographies and channels as our customersreduced inventory levels in the face of weaker consumer demand.”

 

“We expect the economic environment to worsen in the comingmonths and we are therefore taking significant actions to align our coststructure with what is likely to be an extended downturn,” he added.

 

The job cuts will impact earnings in the fourth quarter withmore details being announced in the third quarter earnings being reported on 20January. The vendor expects savings from the job cuts to start coming throughin the first fiscal quarter of 2010.

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