Logitech Cutting Costs, Recording Charges
On Friday, computer peripherals maker Logitech International announced layoffs aimed at shaving $16 million to $18 million from its annual operating cost by fiscal 2014, on top of $80 million in savings already targeted from cutting operating costs and cost of goods sold.
In a statement, Logitech warned that the shift to emphasizing the sale of "mobility products, improving profitability in PC-related products, and enhancing global operational efficiencies," which requires the firm to lay off 140 employees, or 5% of its workforce, will involve a $12 million to $14 million pre-tax, cash charge to earnings in fiscal Q4 2013.
By its calendar, Logitech is in the middle of fiscal Q4 2013 now. The company reported fiscal Q3 earnings in January, showing a loss of $195 million on a 14% decline in revenue.
Logitech shares reacted positively to Friday's news, closing up 0.6% at $6.80.
The article Logitech Cutting Costs, Recording Charges originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Logitech International. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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