Logitech will slash its global workforce by 15 per cent, blaming the deepening global recession for the cutbacks.
The Swiss company has just unveiled three new gaming peripherals ahead of CES, but despite producing over a billion mice since it started, Logitech has admitted it must tighten its belt in the current climate.
"During the December quarter, the retail environment deteriorated significantly," said Gerald P Quindlen, Logitech President and Chief Executive Officer.
Varying degrees of weakness
"We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand.
"Moreover, we expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn."
The statement by the company confirms that the global workforce will be cut by 15 per cent with the associated restructuring charge to be announced in Q3 of 2009 and booked in the final quarter.
"Although the external environment is more challenging than anything we've experienced before, we believe Logitech is very well positioned to manage through this downturn," added Quindlen.
"We have a strong cash position, no debt, and we continue to maintain market share across multiple segments and geographies."