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Logitech’s income has dropped significantly from $133.6 million to $40.5 million over the course of Q3 last year to Q1 this year.
It hasn’t yet been reported on what exactly has caused the gigantic drop in value for the company, but it is expected that the struggling economy has a lot to do with it. Because of this, they will be cutting much of their spending on researching and developing the higher end products.
“We already made some decisions to trim some products that were interesting, but maybe more high end,” stated Jerry Quindelen, Logiech’s CEO. Products that “aren’t perfect for this timeframe and set of conditions” will most likely be delayed.
Their layoff plans hope to save them $50 million this year, and will come to the tune of around 500 jobs.
Image Credit: Logitech
Comments are closed on this article
Keith E. Whisman
January 20, 2009 at 6:25pm
50million dollars divided up amongst 500people. That's $100,000 dollars per employee of those 500. Damn I would love to make $100,000 a year and more of course would be better. Hugging $30,000 a year here is better than what those 500 are getting now though.
I really really like Logitech devices and I hope they can reorganize to save the company during these hard times. This has to be approaching what it was like during the great depression.
Can we expect a New Deal from this new president? I'll pray for him.
gatorXXX
January 20, 2009 at 6:11pm
"but it is expected that the struggling economy has a lot to do with it."
DUH....we are going thru some of the roughest times in recent memory. People just aren't shelling out the money they used to on frivolous things. Like me for instance, I used to buy a new keyboard and mouse just because they were cool, but now, money is tight and I'm not gonna shell out 100+ bucks when I don't have to. I mean, I feel for the employees and our choices that have been cut. But These companies say, OMG, we lost 100 million this year! Let's do a study and find out the cause!! It's simple people. It's because of hard times, not because we don't want the product.
