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Logitech Cutting Costs, Recording Charges

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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.

Read/Post Comments (2) | Recommend This Article (1)

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  • Report this Comment On March 02, 2013, at 4:15 PM, khaledmrd wrote:

    Logitech said in January they will sell Harmony & Alert ranges and evaluating Selling LifeSize Unified Communication Division.

    is the lay-off could part of the selling process?

    Logitech said they will focus on core Business of computing which is

    Desktop PC & Notebooks that is growing in Emerging markets

    and new Ultrabooks, Tablets & Smartphones spaces for Consumer & Business

    Logitech back to its roots, this time not just after PC but the huge Smartphones and growing tablet space

    PC come back expected 2nd H with intel's Haswell processors in many form factors (June) & possible Windows Blue

    Actually Logitech in last 12 months had great products for the Apple's Mac & iPad that designs should utilized for Windows space

  • Report this Comment On March 03, 2013, at 12:08 AM, khaledmrd wrote:

    the lose due to non cash charge, exluding it, they are profitable

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