Swiss computer peripherals marker Logitech has announced evasive measures in the face of the deepening global recession, and especially its detrimental effect on the retail environment.
Logitech clearly doesn't think things are going to perk up any time soon and has consequently decided to restructure, which will take the form of reducing its global workforce by around 15 percent. Logitech employs over 9,000 people, so this amounts to at least 1,300 job losses.
It has also withdrawn its Fiscal Year 2009 growth targets for sales and operating income. Not revised, withdrawn. It plans to update investors on 20th Jan.
"During the December quarter, the retail environment deteriorated significantly," said Gerald P. Quindlen, Logitech president and CEO. "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."
Quindlen's summary of Logitech's situation was indicative of general corporate attitudes to the recession: "Although the external environment is more challenging than anything we've experienced before, we believe Logitech is very well positioned to manage through this downturn," he said.
"We have a strong cash position, no debt, and we continue to maintain market share across multiple segments and geographies. We remain confident in our strategy for driving long-term double-digit growth and we believe the well-considered actions we're taking now will result in an even stronger Logitech when the economic recovery begins."