Global layoffs at Logitech International hit home today at Logitech's Audio Group Business Office in Vancouver.
An undisclosed number of Vancouver employees were laid off today with severance packages, said Nancy Morrison, vice president of corporate communications.
The local office handles product marketing and research and development of audio products for Logitech. The company distributes consumer electronics in more than 100 countries.
Morrison said layoffs in Vancouver were less severe than at other locations, but would not disclose the number of current or previous employees here.
On Monday evening, between 550 and 600 Logitech employees were laid off, or about 15 percent of its global non-factory workforce. The cuts are expected to save the company about $50 million to help with severe decreases that were released in quarterly results Tuesday.
"The deepening recession is having an impact on our business and our response to that is to do a restructuring and to make expense cuts in the company to align with our lower expected revenue," Morrison said Wednesday.
Logitech's net income was drastically reduced from $134 million at this time last year to $40 million, or 22 cents per share, this quarter. Operating income was down 63 percent, from $116 million a year ago to $43 million this quarter. Global retail sales were down 16 percent, with American sales down 21 percent.
Company leaders expect to see continued declines in the quarter ahead.
"We're very committed to innovation," Morrison said. "Our ideas are very high priority and our cuts are not as large in research and development as they are in other parts of the company."
The Vancouver office has operated under Logitech since 2001. Prior to its buy-out, the office operated as Labtec.Logitech is headquartered domestically in Fremont, Calif., and internationally in Romanel-Sur-Morges, Switzerland.
