Mouse Maker Logitech to Lay Off 15 Percent of Staff

By Chris Preimesberger  |  Posted 2009-01-06 Print this article Print

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PC peripheral maker Logitech said Jan. 6 that due to "a deteriorating retail environment" it has withdrawn its fiscal year 2009 growth targets for sales and operating income and will lay off 15 percent of its global salaried work force of about 9,400.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

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.


Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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