Logitech restructures and eliminates 450 Jobs

[Johnny]

After publishing several consecutive downfall results, the Swiss firm announced that 450 jobs will be soon cut off. Logitech is preparing to part with 13% of its total workforce.

Last April, Logitech released the annual results that were going down. The company blamed a 44% decrease in net income (71 million). As for its sales, it also shrank by 2% from $2.36 billion to $2.32 billion. The management stated that its policy of restructuring was to allow annual savings of $80 million.

By cons, Logitech had so far delivered no details on the number of jobs threatened by this wave of restructuring. In a statement, the group said that the plan, which begin in the second half of 2013, would cost it not less than $35 million. It should be completed by the end of fiscal year 2014.

This restructuring will also be accompanied by the elimination of 450 positions which is not less than 13% of total employees. The management says by saddened about this decision but also confirmed that the measure is necessary for the future of society.

Bracken Darrell, president of Logitech explains that this "reorganization should position the company so they can register again not only in growth but also profitability. Our strategy now is to offer fewer products but certainly they must be unavoidable".

[Scubie67]

So this means that the cutt off of the 450 jobs will contribute an estimated 60 percent of the savings for logitech. I bet that logitech had a hard time with the increased demands of consumers and the change in the computer industry. I wonder what kind of products logitech will target in the upcoming time period which will increase its profit?