Logitech to Cut 450 Jobs
It was revealed on Friday that Logitech (NASDAQ: LOGI) will be cutting 450 jobs as part of its restructuring, and roughly 100 of those will be within the U.S.
According to a spokesperson for the company, Nancy Morrison, said that the jobs will represent approximately 5% of Logitech's workforce, and they will be spread throughout the different parts of the company.
While it is undeniably tough on the 450 families that will be affected, the company said that the move is necessary as it will cut annual operating costs by roughly $80 million and free up funds for other growth opportunities.
To be fair to Logitech, it had announced back in April that it was overhauling the company and it has simply been true to its word. The original announcement claimed that it would be eliminating a layer of business and sales executive management, and streamlining the organization. Those changes were expected to be completed by the end of June, so it would appear the company is on schedule.
LOGI has said that it expects to see the benefits of these moves in the second half of the current fiscal year, ending March 2013. It also expects to record pre-tax charges of roughly $35 million this current fiscal year, with a full $32 million of that coming this quarter.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.