Logitech has announced today that it will be laying off 140 jobs, which is about 5% of the company's total workforce. The company says that the layoffs are a result of a shift in focus to their mobile business, as well as "improving profitability in PC-related products and enhancing global operational efficiencies."
The layoffs, along with the rest of the company's plans for realignment will save Logitech between $16 and $18 million during the 2014 fiscal year. Today's layoffs will result in a $12-$14 million charge in the company's fourth-quarter earnings, which is expected to be announced sometime in late April.
Logitech is focusing more on mobile products such as accessories for tablets and other post-PC devices. Back in January when the company announced its third-quarter earnings, they also announced that they would be divesting their Harmony remote business, but much to everyone's excitement, their PC peripheral business is still up and running.
Of course, their focus on PC accessories and peripherals is no surprise. Their mice and keyboards are some of the most popular amongst avid PC users, and with the industry slowly shifting towards mobile, Logitech's refocusing on the mobile industry is key. In fact, they already announced a keyboard case for the iPad mini.
Logitech has been through rough patches lately. The company reported an operating loss of $180 million during its third quarter that ended last month, with sales of $615 million, which was down 14% compared to the same time last year. Hopefully the company's restructuring this quarter will put them in the black come late April.