Logitech to Cut 450 Jobs as Part of Restructuring
Logitech International SA said Friday that it's cutting 450 jobs - including about 100 in the U.S. - as part of its restructuring.
Company spokeswoman Nancy Morrison said the jobs to be eliminated, about 5 percent of the Logitech's workforce as of March 31, are scattered through various parts of the company.
The Swiss company makes computer peripherals, video conferencing equipment and other gadgets. Its annual revenue growth slowed over the last three years and its profit dropped by double digits last year.
Logitech said the restructuring will cut annual operating costs by about $80 million and help it free up money for growth opportunities. Logitech had said in April that it was overhauling the company, eliminating a layer of business and sales executive management and streamlining the company's organization. It had said then that moves would be completed by the end of June, its fiscal first quarter.
The company said it expects to see benefits from the restructuring beginning in the second half of its current fiscal year, which ends in March 2013. It expects full savings to take effect in fiscal 2014.
As a result of the changes, the company said it expects to record pretax charges of about $35 million this fiscal year, with $32 million of that coming in the current quarter. Most of the charges are costs related to the job cuts.
Logitech shares rose 8 cents to close at $10.28.