Logitech cuts staff and scraps 2009 forecasts

Peripherals specialist Logitech has announced plans to cut 15% of its workforce and has withdrawn its 2009 fiscal year targets.

The global recession was blamed by Gerald Quindlen, president and CEO of Logitech, for the decision to make the cuts and changes.

"During the December quarter, the retail environment deteriorated significantly," he added in a 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.”

“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,” he added.

The job cuts will impact earnings in the fourth quarter with more details being announced in the third quarter earnings being reported on 20 January. The vendor expects savings from the job cuts to start coming through in the first fiscal quarter of 2010.