* To take $35 mln charge; higher-than-expected
* Analysts cautious about Logitech's return to growth
* Shares down 2.8 pct, lag technology sector
(Adds analyst comment, share price)
By Katharina Bart and Sakthi Prasad
June 7 Swiss-listed Logitech International
will cut about 13 percent of its workforce, in an
attempt by the computer mouse maker's new president for a quick
fix following three profit warnings.
Logitech said on Friday the job cuts, mainly white-collar
positions, will result in a $35 million charge. They are part of
a restructuring, announced in April, to save $80 million amid a
soft euro and weak economy.
Shortly before, Logitech hired former Whirlpool
executive Bracken Darrell as its president. Darrell is set to
replace Chief Executive Guerrino de Luca in January.
Logitech stock fell on Friday, which dealers said was in
large part due to investor skepticism that the company could
reach its cost-savings targets. At 0858 GMT, Logitech shares
were 2.8 percent lower, lagging a 1.2 percent drop in the
European technology sector
"Although we appreciate the company's restructuring efforts,
much still depends on whether Logitech can return to more
healthy growth rates, which in turn rests on its ongoing
portfolio refresh," Kepler Research analyst Cyrill Pluess wrote
in a note to investors.
Analysts at Bank Vontobel said the restructuring charges are
higher than expected, and that job cuts will result in savings
immediately, as opposed to other measures to restructure its
About $32 million of the charges will be booked against the
first quarter of the 2012/13 financial year, which ends on June
30. The company said the job cuts would make up about 60 percent
of the $80 million savings the company is seeking.
In January, Logitech cut its outlook for the third time in
less than a year, after pledging late last year that the company
appeared to have weathered the worst following two earlier
(Reporting by Katharina Bart in Zurich and Sakthi Prasad in
Bangalore; Editing by Erica Billingham)