450 jobs cut
Logitech has announced that it will be taking a $35 million restructuring charge in its current fiscal year. The $35 million is the cost of restructuring the organization to free up resources and return to profitability. Logitech expects restructuring the net $80 million in annual operating cost savings. The savings will be seen fully in fiscal 2014.
The restructuring will see 450 jobs eliminated amounting to 13% of Logitech's global non-direct labor workforce. Logitech says that about 60% of the $80 million in savings it expects to see will be from the elimination of jobs. “As we announced in April, this organizational streamlining, along with our strategy to deliver fewer but more compelling products, should position Logitech for renewed growth and profitability,” said Bracken Darrell, Logitech president. “While we are saddened by the departure of many colleagues, the restructuring is necessary for our future success.”