Mouse Maker Logitech to Lay Off 15 Percent of Staff
CEO Gerald Quindlen blames "a deteriorating retail environment" for its sales woes. The company also withdraws its fiscal year 2009 growth targets for sales and operating income and will lay off about 1,400 of its 9,400 full-time employees.PC peripheral maker Logitech said Jan. 6 that due to "a deteriorating retail environment" it has withdrawn its fiscal year 2009 growth targets for sales and operating income and will lay off 15 percent of its global salaried work force of about 9,400.
The Switzerland-based company, which makes mice, keyboards, Webcams, speakers, Internet radios and gaming devices, already had revised its market projections downward in October.
Logitech also makes the SqueezeBox Internet radio in a partnership with the popular Internet music service Pandora.com.
Logitech Vice President of Corporate Communications Nancy Morrison told eWEEK that the company cannot comment on sales performance or anything else regarding the announcement due to the "quiet" period before a quarterly report.
The company did not provide revised targets on Jan. 6 but plans to update investors on business conditions and performance during its briefing on third-quarter results on Jan. 20.
"During the December quarter, the retail environment deteriorated significantly," Logitech President and CEO Gerald Quindlen said in a press statement. "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."
Quindlen said Logitech has "a strong cash position, no debt, and we continue to maintain market share across multiple segments and geographies."
Three months ago, before the stock market downturn, Logitech had forecast growth of 6 to 8 percent in sales and 3 to 5 percent in operating income.
Logitech stock shares closed 6 percent lower at $15.16 on Jan. 6, down 95 cents.