Menu
Logitech to cut 525 salaried employees

Logitech to cut 525 salaried employees

Logitech will cut 15 percent of its salaried employees as it expects weaker consumer demand for computer peripherals, it said on Tuesday, just a month after shipping its billionth mouse.

The company has 9000 employees, including manufacturing workers in China, with 3500 of those on salary, according to a spokeswoman. The layoffs mean 525 workers will be relieved by the end of March.

Those expected to lose their jobs include managers and product developers, although the spokeswoman would not say how the layoffs will affect Logitech's product offerings. Manufacturing workers will not be reduced as of yet, she said.

Logitech also withdrew its fiscal year 2009 growth targets for operating income and sales. Logitech will update that guidance on Jan. 20, when it releases its results for the third quarter of its fiscal year.

A restructuring charge related to the layoffs will be included in its fourth quarter fiscal 2009 results, with the savings showing up in its first quarter fiscal 2010 results, the company said.

In October, Logitech said it expected fiscal 2009 sales to grow between 6 percent and 8 percent and operating income to grow by 3 percent to 5 percent. Prior to that announcement, Logitech had expected sales and operating income to rise by 15 percent. The changes in the company's projections underscore the rapid deterioration of the world's economy.

The current economic conditions are the most challenging Logitech has ever faced, it said.

However, the company has no debt and a strong cash position and is maintaining market share, it said. Logitech expects to return to double-digit growth when the current economic malaise subsides.

Logitech sells computer mice in more than 100 countries and makes some 376,000 mice a day, the company said in December.

It joins numerous other technology companies bracing for a rough 2009 and shedding workers over the last few months, including Yahoo, AMD, AT&T, Nokia and more.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags logitechinternational news

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments