Logitech made clear in January that it was jettisoning weight in a bid to stem losses and focus on more successful technologies like mobile peripherals. Sadly, we're learning today that this also includes cutting jobs. The company is shedding 140 positions, or about 5 percent of its non-manufacturing workforce, as part of a streamlining plan that could save an extra $16 million to $18 million during Logitech's fiscal 2014. While there's no specific timeframe mentioned, it's suggested the layoffs will come quickly when the company may pay up to $14 million to address the cuts during its ongoing fourth quarter. Let's hope those affected land on their feet, and that the savings pay off in the long run.
[Image credit: Coolcaesar, Wikipedia]
Logitech Realigns Organization with Strategic Priorities, Resulting in Expected Incremental Cost Savings of $16 to $18 Million for FY 2014
NEWARK, Calif. - Feb. 28, 2013 and MORGES, Switzerland, March 1, 2013 - Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced an organizational alignment to the strategic priorities outlined by newly appointed CEO Bracken P. Darrell last month. These priorities include increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies. This alignment to the strategic priorities creates incremental cost savings of approximately $16 to $18 million in operating expenses in Fiscal Year 2014, a result of a workforce reduction. This is in addition to the previously announced $80 million savings in annual operating costs (operating expenses plus costs of goods sold) for Fiscal Year 2014 related to the Company's April 2012 restructuring.
"As we align the organization with our strategy to become a faster, more profitable company, we have also created opportunities to become more focused, improve operational effectiveness and even deliver additional cost savings that will contribute to improved profitability," said Bracken P. Darrell, Logitech president and chief executive officer. "These actions support our goals to develop outstanding mobility- and PC-related products, streamline our cost structure and achieve faster times to market."
Logitech anticipates recording a pre-tax, cash charge of approximately $12 to $14 million in the fourth quarter of Fiscal Year 2013. The charge is related primarily to personnel reductions, with the Company eliminating approximately 140 positions, or 5 percent of its worldwide non-direct-labor workforce.
Additional information regarding the restructuring charges is provided in Logitech's Current Report on Form 8-K being filed with the U.S. Securities and Exchange Commission on March 1, 2013 and made available on Logitech's website at http://ir.logitech.com.