Logitech announces $35 million in restructuring charges

Logitech has announced that it expects to record a massive charge for restructuring of $35 million. The charges will come in its current fiscal year and are part of its previously announced restructuring. Logitech says that it is undertaking the restructuring in order to simplify the organization and to align costs with current business and free up resources.

Logitech expects to receive a savings of about $80 million in annual operating costs and the benefit to the company will be seen in the second half of fiscal year 2013. Full savings is expected to be seen in fiscal year 2014. Logitech reports that about $32 million in restructuring charges will be recorded in Q1 of fiscal 2013, which ends June 30, 2012.

Part of the restructuring will see Logitech eliminate 450 jobs, which is 13% of its worldwide non-direct labor force. The reduction in personnel will provide about 60% of the $80 million in annual operating savings Logitech expects.