Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that it expects to record pre-tax charges in the current fiscal year of approximately $35 million associated with the company’s previously announced restructuring. The company is undertaking this restructuring to simplify the organization, to better align costs with its current business and to free up resources to pursue its growth opportunities. The restructuring is expected to yield approximately a net $80 million reduction in annual operating costs. The reduction will begin to benefit the company in the second half of Fiscal Year 2013 with the full savings expected to be achieved in Fiscal Year 2014.
Approximately $32 million of the restructuring charges are expected to be recorded in the first quarter of Fiscal Year 2013, ending June 30, 2012. The largest component of the restructuring charge will be cash charges related to a workforce reduction. The company is eliminating approximately 450 positions, or 13 percent of its worldwide non-direct-labor workforce. Logitech expects that reduced personnel-related costs will represent an estimated 60 percent of the approximately $80 million savings in annual operating costs.
“As we announced in April, this organizational streamlining, along with our strategy to deliver fewer but more compelling products, should position Logitech for renewed growth and profitability,” said Bracken Darrell, Logitech president. “While we are saddened by the departure of many colleagues, the restructuring is necessary for our future success.”
Additional information on the restructuring charges is provided in the Current Report on Form 8-K being filed with the U.S. Securities and Exchange Commission on June 8, 2012 and made available on Logitech’s website at http://ir.logitech.com.About Logitech Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).
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