Logitech has announced that it has withdrawn its Fiscal Year 2009 growth targets for sales and operating income due to the deepening global recession.
Logitech says it plans to reduce its salaried workforce globally by approximately 15% by the end of 2009 as well as reducing operating expenses.
"During the December quarter, the retail environment deteriorated significantly", said Gerald P. Quindlen, Logitech president and chief executive officer.
"We experienced varying degrees of weakness across all geographies and channels as our customers reduced inventory levels in the face of weaker consumer demand. Moreover, 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".
Logitech has not yet provided revised targets and plans but will do so during its briefing on its third quarter results on 20 January, 2009.