Logitech To Take Charge In Q4 As It Cuts 140 Positions - Update

(RTTNews.com) - Computer interface devices manufacturer Logitech International S.A. ( LOGI ) Thursday said it expects to record a pre-tax, cash charge of $12 million to $14 million in the fourth quarter of 2013, related primarily to personnel reductions, as the company is eliminating 140 positions or 5 percent of its worldwide non-direct-labor workforce.

In an alignment to strategic priorities, as outlined by Logitech's new CEO Bracken Darrell, the firm will increase focus on mobility products, improve profitability in PC-related products and enhance global operational efficiencies.

This alignment to strategic priorities will create incremental cost savings of $16 million to $18 million in operating expenses in fiscal 2014, as a result of the workforce reduction. This is in addition to the previously announced $80 million savings in annual operating costs for fiscal 2014 related to the company's April 2012 restructuring.

Darrell said, ''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."

The stock fell about 0.5 percent on Thursday in Zurich to settle at 6.33 euros.

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