Jan 6, 2009 12:20 am US/Pacific
Logitech To Cut Salaried Staff By 15 Percent
FREMONT (AP) ―
Logitech International SA, a maker of mice, webcams and other computer peripherals, said Monday it is cutting its salaried work force by 15 percent in response to weak consumer demand amid what it expects to be an extended global downturn.
Switzerland-based Logitech, which also has offices in Fremont, has about 3,500 salaried employees in a total work force of about 9,000.
The company also withdrew its previous fiscal 2009 forecasts for sales growth of 6 to 8 percent and operating income growth of 3 to 5 percent. It did not provide revised targets and said it plans to update investors on its outlook during its third-quarter results briefing on Jan. 20.
"During the December quarter, the retail environment deteriorated significantly," said Gerald P. Quindlen, Logitech's president and chief executive officer. He added in a statement that "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."
Logitech said it will book a restructuring charge for the job cuts in its fiscal fourth quarter. It said it will detail the charge when it issues its third-quarter results.
Quindlen said the company has a strong cash position, no debt, and is maintaining market share.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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