Logitech to Reduce Workforce by 450 Employees in Restructuring Effort
Job cuts in the tech industry has become an all too common theme in the past couple of years, and the latest round of redundancy reductions is set to take place at Logitech. The peripheral maker announced plans to restructure its operations and simplify its organization to "better align costs with its current business to and free up resources to pursue its growth opportunities," and part of the process will entail handing out 450 pink slips.
"As we announced in April, this organizational streamlining, along with our strategy to deliver fewer but more compelling products, should position Logitech for renewed growth and profitability," said Bracken Darrell, Logitech president. "While we are saddened by the departure of many colleagues, the restructuring is necessary for our future success."
Image Source: Flickr (Erik Charlton)
The elimination of 450 jobs is equivalent to 13 percent of Logitech's workforce, which will save the company millions of dollars over the long haul. In the short term, Logitech expects to record pre-tax charges totaling $35 million, while personnel-related costs will represent an estimated 60 percent of the approximately $80 million savings in annual operating costs, Logitech said.
"As we announced in April, this organizational streamlining, along with our strategy to deliver fewer but more compelling products, should position Logitech for renewed growth and profitability," said Bracken Darrell, Logitech president. "While we are saddened by the departure of many colleagues, the restructuring is necessary for our future success."
Image Source: Flickr (Erik Charlton)
The elimination of 450 jobs is equivalent to 13 percent of Logitech's workforce, which will save the company millions of dollars over the long haul. In the short term, Logitech expects to record pre-tax charges totaling $35 million, while personnel-related costs will represent an estimated 60 percent of the approximately $80 million savings in annual operating costs, Logitech said.
