Earlier this month we reported about the probable job cuts by Logitech. Now after posting sudden drop in the third quarter financial performance, the company expects to cut jobs between 500 to 600. Most of the jobs will probably be cut in the fourth quarter. According to the company’s CEO, Gerald Quindlen:
All indications point to an even weaker retail environment in the coming months. Consequently, our plans assume that in Q4 we will see year-over-year declines in sales, operating income before restructuring charges and gross margin that are similar to or worse than the year-over-year declines we experienced in Q3.
However, we expect to continue to generate positive cash flow from operations as we focus on preserving the strength of our balance sheet. Moreover, we believe the substantial steps we are taking to align our cost structure with the current environment, combined with our continued emphasis on product innovation, will position the Company to successfully manage through this downturn and emerge stronger when the recovery begins.
