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Print 26 comment(s) - last by abscoder.. on Jan 9 at 12:01 PM

Logitech is the latest company to begin slashing jobs

Logitech kicked off the week by announcing it will release 15 percent of its total salaried workforce, with most of the 500 job cuts expected to be non-manufacturing jobs.  Logitech has 9,000 employees worldwide, while only 3,500 are on salary, with offices in Silicon Valley, Europe, and Asia.

The weakness for Logitech's products -- with the company specializing in peripherals -- is across the world, and isn't especially high in a specific geographic area.  Christmas sales of Logitech products were worse than expected by company officials, although specific sales numbers were not discussed.

In October, Logitech lowered its fiscal 2009 sales and profit forecasts, with economic growth the main reason behind the move.  Although original estimates indicated 15 percent expansion in both sales and profits, the company later predicted sales would increase 6 to 8 percent and operating income would rise 3 to 5 percent for the fiscal year.

"We are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn," Logitech CEO Gerald Quindlen said in a statement.  The company hopes  to make it through this economic crisis because it has "a strong cash position, no debt and we continue to maintain market share across multiple segments and geographies."

Because Logitech has a wide variety of lower-cost products when compared to average household income, the fact that the company is cutting jobs is not a good sign; financial analysts agree.  Managers and product developers will lose their jobs, but manufacturing jobs could be cut at a later date.  

Logitech has scheduled an earnings teleconference later this month, when company executives will further discuss the job restructuring and financial outlook change.

The struggling economy has forced Logitech, Sony, Philips Electronics, Sun Microsystems, Motorola, and other companies to reduce their workforces as consumers are reportedly beginning to buckle down on spending.



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weakness for Logitech's products
By Mitch101 on 1/7/2009 10:55:38 AM , Rating: 4
quote:
weakness for Logitech's products


Between their Mice and Remote Controls I cant imagine Logitech hurting. This kind of caught me by surprise as I would expect them to be raking in the dough.




RE: weakness for Logitech's products
By FITCamaro on 1/7/2009 11:06:03 AM , Rating: 2
Agreed. Logitech's products are the best out there (Microsoft's are good too but Logitech's typically are better). I have their MX3200 keyboard and mouse setup at home for gaming as well as a cheap wireless keyboard and mouse for my less used computer.

I hope this doesn't hurt their product quality.


RE: weakness for Logitech's products
By nosfe on 1/7/2009 11:14:54 AM , Rating: 2
i also like logitech but they are starting to get out of hand, i mean, they just recently announced the G19 gaming keyboard, only $200!


RE: weakness for Logitech's products
By wempa on 1/7/2009 12:24:39 PM , Rating: 2
I think enough of their products are low enough in price where the few extra dollars is worth it to get the quality level they are known for. In the past, I've tried several cheap mice, keyboards, speakers, etc. and have always come back to Logitech. If it's something that will be used a lot, it's worth the extra money.


RE: weakness for Logitech's products
By nosfe on 1/7/2009 1:15:58 PM , Rating: 2
but those are all old. When was the last time they announced a good cheap mouse/keyboard? i want an update to the mx518, something with an improved shape, without those silly little buttons by the scroll wheel, with better feet and a more durable scroll wheel. Not weight changing, laser sighting, lcd sporting mice that everybody makes nowadays.


RE: weakness for Logitech's products
By TomZ on 1/7/2009 1:26:49 PM , Rating: 2
I like their cordless mice, but their wireless keyboard desk sets seem to commonly suffer from reception/connectivity issues.

I've had several models that were strangely sensitive to position and orientation of the receiver relative to the keyboard and mouse.

It is annoying when keystrokes get lost even though the receiver is 2 feet away. Turn the receiver a little and it starts working again.


RE: weakness for Logitech's products
By The0ne on 1/7/2009 2:36:23 PM , Rating: 2
I use mainly logitech products and can attest to your comments. I believe the fault is in the driver and the application. Sometimes it's even better not to use the setpoint application as it will do weird things in certain apps and games. In Wow, I have to disable the setupoint apps so I can use the side buttons properly and to not have the keys constantly repeated onscreen until it reconnects. Doesn't happen often but pretty annoying when it does.


RE: weakness for Logitech's products
By TomZ on 1/7/2009 3:22:45 PM , Rating: 2
I typically don't load Logitech's drivers or application software, so I tend to think the problem is more of a hardware problem than a driver problem.

For me, the value added in loading the Logitech software is not worth the costs - crashes and compatibility issues. I just run straight generic Microsoft drivers now.


By abscoder on 1/9/2009 12:01:59 PM , Rating: 2
Maybe I've been lucky; I've never had a problem with any of there wireless keyboards. Granted, it's not been a lot; maybe 4 or 5 in as many years.


RE: weakness for Logitech's products
By on 1/7/09, Rating: -1
RE: weakness for Logitech's products
By FITCamaro on 1/7/2009 2:25:16 PM , Rating: 2
So do you suck Sony's dick and hate anything else?

I will say this is probably the only post I've seen where you've at least expressed a complete thought.


RE: weakness for Logitech's products
By sgw2n5 on 1/7/2009 3:45:50 PM , Rating: 2
Oh just leave him be.

He's obviously either a kid that doesn't have english as his first language, or mentally retarded.

Maybe both?


RE: weakness for Logitech's products
By TomZ on 1/7/2009 3:54:34 PM , Rating: 1
I think he/she is aiming for a "perfect" -1 rating overall on DT. Last I checked, he/she was pretty close, with -0.95.


By Samus on 1/8/2009 7:22:11 AM , Rating: 2
I agree. Logitech's high end stuff is simply too expensive for today's market. The casual gamer will always be satisfied with a $30 keyboard and mouse. Charging $200 for a keyboard and over $100 for a high end mouse is ridiculous. At least their speakers have been competitively priced for awhile...


By Omega215D on 1/8/2009 1:52:41 PM , Rating: 2
They dropped the ball on drivers big time. The new driver release currently doesn't work as the settings don't stick and it reverts back to OS implementations. I hope someone in the programming dept. got fired for that one.


By HeavyB on 1/7/2009 11:29:25 AM , Rating: 2
I agree that they make high quality products, but a growing portion of their product portfolio are more luxury type items (like the Harmony remotes and Squeezebox line of products, both of which I use and like a lot). I'm guessing sales of these types of products may be taking a steep downward turn in thanks to the tanking economy.


By ebakke on 1/7/2009 12:27:54 PM , Rating: 2
Their hardware rocks my socks off. Their software on the other hand...meh.


By zombiexl on 1/7/2009 12:33:45 PM , Rating: 2
I like their product, although i find their remotes to be a little overpriced.

I would suspect most people shopping for a Universal Remote will see the one for $20 and skip the $100+ logitech ones. Most consumers dont bother to compare more than price on items with a similar function.


By dj LiTh on 1/7/2009 2:00:01 PM , Rating: 2
Whats with the round numbers.... 15%... is that because 14% was too little and 16% too much. It doesnt seem like any real thinking goes into these layoffs other than we need to save ....uh 15%! of our payroll. You'd think a tech company especially would be more keen to layoff people because they're dead weight and want to retain smart hard workers that pay for themselves and the poor shmoe next to them.

Oh...and i like logitech products, normally recommend them for many different items.


By InTheEyeOfTheBeholder on 1/8/2009 5:27:39 PM , Rating: 2
Maybe they can make up the difference by adding linux support and drivers to their products. I really would like do get a driver for their simple and cheap trackball for ubuntu. Configuring it now is a real pain in the a--. I want my trackball. I do not use M$!


Meat!
By bobcpg on 1/7/2009 10:59:46 AM , Rating: 2
Where is the traditional picture of the knife cutting the fat off the meat?




RE: Meat!
By noxipoo on 1/7/2009 11:36:18 AM , Rating: 5
it's been laid off.


nothing but the best
By codeThug on 1/7/2009 12:06:17 PM , Rating: 2
When my life is on the line (pun intended) playing Call of Duty, nothing but Logitech will do.

An extra $10 or $20 is nothing when it comes to getting fragged.




Translation
By zombiexl on 1/7/2009 12:30:42 PM , Rating: 2
quote:
"We are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn," Logitech CEO Gerald Quindlen said in a statement


Its not that bad, but I need to protect my bonus.




By jonmcc33 on 1/7/2009 3:19:57 PM , Rating: 2
It was already announced that soon IT businesses would start to suffer due to the economy. If this was not understood because people assume great product = booming business then they need to wake up. Sure, I use Logitech at home and work. That doesn't take away the fact that the economy sucks and will supposedly get worse.




By ggordonliddy on 1/9/2009 12:31:13 AM , Rating: 2
I haven't bought a Logitech keyboard in years, since they adopted extremely bad practices (removal of the standard 3x2 Insert/Home/PageUp key block, and idiotically defaulting the function keys to other behaviors).




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