Logitech Withdraws Guidance; Sets 15 Percent Workforce Cut
Logitech (LOGI) late Monday said it is withdrawing its sales and operating income growth targets for the March 2009 fiscal year. The maker of computer peripherals and other consumer electronics accessories also said it will reduce its global workforce by about 15 percent. The company has about 9,400 employees, suggesting the loss of about 1,400 jobs. The cuts will result in an unspecified charge to earnings in the fiscal fourth quarter ending in March.
In a statement, CEO Gerald Quindlen said that in December, “the retail environment deteriorated significantly.” He said customers reduced inventory levels in the face of weaker consumer demand. Quindlen added that he expects the economic environment to worsen in the coming months.