Logitech is the latest addition to what's becoming almost a running feature of "what tech company is cutting its workforce this week?" Joining Sony, Virgin Media and AMD, Logitech is announcing that 15 per cent of its global workforce is to be cut in order to reduce costs and help Logitech stay competitive in the current global financial situation.
Gerald P. Quindlen, Logitech's president and chief executive officer, commented that "during the December quarter, the retail environment deteriorated significantly. We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand." The situation apparently doesn't seem likely to improve any time soon, either, Quindlen continuing: "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."
Logitech expects savings from this restructuring, and downsizing, of its workforce to manifest in the 2010 financial year, so this isn't too long-term a plan. Indeed, Logitech is pretty confident it will only be a few months before it sees some benefit from the plan downsizing announced today.
Quindlen believes that "Logitech is very well positioned to manage through this downturn. We have a strong cash position, no debt, and we continue to maintain market share across multiple segments and geographies. We remain confident in our strategy for driving long-term double-digit growth and we believe the well-considered actions we're taking now will result in an even stronger Logitech when the economic recovery begins."
Logitech is holding an investors briefing on the 20th of this month, so more information regarding the specifics of this restructuring plan, and the specifics of Logitech's current financial position, will likely be revealed then.
If you're reading this at Logitech, take a good look at the five and two thirds people around you, because statistics dictate that either you or one of them is going over the coming months.