The Company aims to slash 140 people from their global operations as the Swiss Company struggles to get traction in the fast changing accessories market.
Over the weekend, Logitech management said that will eliminate 5 percent of its workforce and net the company up to $18 million in incremental savings for the next fiscal year.
The moves were made to align the company with strategic priorities outlined by newly appointed CEO Bracken Darrell last month, after Logitech posted a third-quarter loss and announced that it would get out of the remote control and video security businesses. Those priorities include an increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies.
2 years ago Logitech Australia had a major falling out with Harvey Norman. Senior management told ChannelNews at the time that Harvey Norman management were "demanding more and more rebates" despite sales falling at the mass retailer.
The Company chose to walk away from the mass retailers to work with the likes of Dick Smith, JB Hi Fi and The Good Guys. They also moved to sell direct over the Internet.
"These actions support our goals to develop outstanding mobility- and PC-related products, streamline our cost structure and achieve faster times to market. As we align the organization with our strategy to become a faster, more profitable company, we have also created opportunities to become more focused, improve operational effectiveness and even deliver additional cost savings that will contribute to improved profitability," Darrell said.