Logitech to slash 15 percent of workforce

The Swiss manufacturer of computer peripherals such as webcams and mice cites the economic downturn as the reason for the job cuts
Written by Tom Espiner, Contributor

Swiss peripherals manufacturer Logitech is to cut approximately 15 percent of its salaried workforce. Logitech has over 9,000 employees of all kinds worldwide.

The company has 3,500 salaried employees, of which approximately 500 will be laid off. The remaining 5,500 manufacturing employees, based mainly in China, will not be affected by these cuts, a Logitech spokesperson told ZDNet UK on Tuesday. The company, which has key offices in Silicon Valley, Switzerland, Ireland and Holland, has sales sites in most European countries, including the UK.

"The UK has a body of employees who are potentially affected," the Logitech spokesperson told ZDNet UK.

In a statement on Monday, the company cited the deepening economic gloom as the reason for the cut.

"During the December quarter, the retail environment deteriorated significantly," Logitech chief executive Gerald Quindlen said. "We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand. Moreover, 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."

In its announcement about its restructuring, the company withdrew its growth targets for sales and operating income in its fiscal year 2009, and did not provide any new estimates.

The company will give details of the job cuts and restructuring with its Q3 fiscal year 2009 results, due on 20 January. It expects savings from the restructuring to begin to show in the first quarter of its fiscal year 2010.

Logitech makes products such as keyboards, mice, webcams, headphones and remote controls. On Tuesday, it introduced several products at the Consumer Electronics Show in Las Vegas.

Editorial standards