Logitech has announced that it will be cutting its workforce by approximately 15 per cent – – as it looks to reduce expenses due to the worsening economy.
However, the firm has made moves to stress that it is not in any danger from the recession, with president and chief executive Gerald Quindlen (pictured) saying the firm is still in a strong position, despite decline consumer activity.
"During the December quarter, the retail environment deteriorated significantly," Quindlen said in a statement. "We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand.
However, he did say that he was expecting the economy to continue to get worse in the next couple of months, hence the move to restructure the company. "We expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn.
"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," continued Quindlen.
"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."