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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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Rich Smith
TMFDitty

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

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2/27/2015 4:00 PM
LOGI $14.78 Down -0.24 -1.60%
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