Logitech has announced that it will shed 140 jobs — approximately 5 percent of its global workforce — in a realignment that sees it cut costs and place greater emphasis on its mobile products, over its flagship range of PC accessories. The changes are expected to save the company $16 million-$18 million in operating expenses during its 2014 fiscal year.
The company is in the midst of change, having announced plans to sell its Harmony remote business unit in January, following a “disappointing quarter”. Newly appointed CEO Bracken Darrell has identified three key priorities to turn things around: the aforementioned focus on mobile, improvements to its PC product profitability and a leaner global operations structure.
The growth in tablets and smartphones has cut into the PC industry and the peripherals and accessories that the company makes are not selling in sufficient volumes to keeps its business ticking over. A switch to focus on its mobile business is entirely logical, but it is an increasingly competitive and crowded space that brings challenges.
The announcement — which was first spotted by The Verge — contains a few lines from Darrell, who says:
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. These actions support our goals to develop outstanding mobility- and PC-related products, streamline our cost structure and achieve faster times to market.
Logitech is expecting that the lay-offs will see it record a $12 million-14 million cash charge as part of its Q4 financial report.
Headline image via Geoff Stokes / Flickr