March 2, 2013
On Friday, computer peripherals maker Logitech International (NASDAQ: LOGI ) announced layoffs aimed at shaving $16 million to $18 million from its annual operating cost by fiscal 2014, on top of $80 million in savings already targeted from cutting operating costs and cost of goods sold.
In a statement, Logitech warned that the shift to emphasizing the sale of "mobility products, improving profitability in PC-related products, and enhancing global operational efficiencies," which requires the firm to lay off 140 employees, or 5% of its workforce, will involve a $12 million to $14 million pre-tax, cash charge to earnings in fiscal Q4 2013.
By its calendar, Logitech is in the middle of fiscal Q4 2013 now. The company reported fiscal Q3 earnings in January, showing a loss of $195 million on a 14% decline in revenue.
Logitech shares reacted positively to Friday's news, closing up 0.6% at $6.80.
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