Logitech today announced they are laying off approximately 140 employees as part of an ongoing restructuring and realignment effort that began last year. The layoffs account for roughly five percent of the company's worldwide non-direct-labor workforce and will result in a charge of $12 million to $14 million according to a press release on the matter.
Logitech says the layoffs are expected to create cost savings of between $16 million to $18 million during fiscal year 2014. We are told that this is in addition to the $80 million savings in annual operating costs related to the April 2012 restructuring.
CEO Bracken P. Darrell said that as they align the organization with their strategy to become a faster and more profitable company, they have also created opportunities to become more focused, improve operational effectiveness and deliver additional cost savings that will contribute to overall profitability.
Back in January Logitech revealed plans to axe their Harmony remote control and digital video security division. Darrell said at the time that neither division was producing acceptable results as sales of Harmony results reportedly fell 55 percent. We are also hearing that they will discontinue their speaker docks and console accessories by the end of this year.
Logitech is having to evolve with the changing technology landscape just like several other companies as consumer interest in mobile products like smartphones and tablets continue to eat away at the once thriving PC industry. Moving forward, they will be focusing on mobile-oriented products like the Ultrathink Keyboard Cover for iPad.