Logitech says it expects to record pre-tax charges in the current fiscal year of approximately $35 million associated with the company’s restructuring. Logitech is undertaking a 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 is expected to begin benefiting Logitech in the second half of the fiscal year 2013 with the full savings expected to be achieved the year after.
Approximately $32 million of the restructuring charges are expected to be recorded in the first quarter of FY 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 per cent of its worldwide non-direct-labor workforce. Logitech expects that reduced personnel-related costs will represent an estimated 60 per cent of the approximately $80 million savings in annual operating costs.
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