Logitech International, the Swiss maker of computer mice, webcams, and other peripherals, will trim about 15 percent of its work force amid “weakness across all geographies and channels,” the company disclosed.
The company, based in Romanel-Sur-Morges, but with offices in Fremont, California, also trimmed its targets for 2009 sales and operating income.
In Tuesday afternoon trading, shares of Logitech tumbled $1.45, or 9 percent, to $14.66.
The company, whose third-quarter earnings are scheduled for release on January 20, cited the “deepening global recession” for the clouds gathering around its business.
"During the December quarter, the retail environment deteriorated significantly," Gerald Quindlen, Logitech chief executive officer, said 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. 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."
In August, Logitech rolled out a feedback wheel for Nintendo’s Wii game console and in September the company launched the Pure-Fi Express Plus, a speaker dock for Apple’s iPod and iPhone.
Logitech’s employs about 9,400 workers worldwide. The company said it will book the restructuring charge in the fourth quarter of fiscal 2009 and that savings will begin to appear the following quarter.
In October, Logitech cut its forecast for fiscal 2009 from 15 percent growth in sales and operating income to 6-8 percent growth in sales and 3-5 percent growth in operating income. The company did not issue revised guidance.