Logitech Announces Layoffs To Focus On Mobile Business
- Cost savings of approximately $16-18 million
- Increase focus on mobility products
- Poor sales performance
Logitech International announced today that they will lay off about five percent of its non-direct workforce as part of an organization restructure in line with strategic priorities outlined by CEO Braken P.
- Cost savings of approximately $16-18 million
- Increase focus on mobility products
- Poor sales performance
Logitech International announced today that they will lay off about five percent of its non-direct workforce as part of an organization restructure in line with strategic priorities outlined by CEO Braken P. Darell.
The poor sales of the company’s PC accessories have forced Logitech to realign its efforts with specific emphasis on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies. The said strategies are expected to create an incremental cost savings of approximately $16-$18 million in operating expenses by 2014.
According to Logitech’s President and CEO, Bracken Darell, the company has also created opportunities to become more focused, improve operational effectiveness and deliver additional cost savings designed to contribute to improved profitability on top of the organizational restructuring being done.
Logitech anticipates recording a pre-tax, cash charge of around $12 to $14 million by Q4 of Fiscal year 2013. This charge is related primarily with personnel reductions which equate to roughly 140 laid off positions, or 5 percent of its world-wide non-direct workforce.
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