Logitech to slash jobs, withdraws targets
ZURICH (Reuters) - Logitech International SA (LOGN.VX), the world's largest computer mouse maker, said it plans to cut 15 percent of its salaried workforce and withdrew its fiscal 2009 financial targets, citing deepening global recession.
"During the December quarter, the retail environment deteriorated significantly," Chief Executive Gerald Quindlen said in a statement on Tuesday, adding that the company expects the economic environment to worsen in coming months.
In October, the company already cut its growth forecast for sales and operating income in its fiscal year ending March 31, 2009 from 15 percent each to 6-8 percent and 3-5 percent, respectively.
Logitech, which also makes speakers, webcams and keyboards, did not provide revised targets for sales and operating income, but said it would give a further business update with its third-quarter results on January 20.
It would not comment on its targets for fiscal year 2010, but said it expects savings from the restructuring to begin in the first quarter of fiscal 2010.
Logitech would book a restructuring charge in its fiscal 2009 fourth quarter, the company said, adding more details would follow on January 20.
"We remain confident in our strategy for driving long-term double-digit growth," said Quindlen, citing a strong cash position and the maintenance of its market share in multiple business segments and geographical areas.
(Reporting by Ratul Ray Chaudhuri and Jason Rhodes; Editing by Hans Peters)
