updated 01:40 am EDT, Thu April 26, 2012
New president eliminates two executive positions
Following a lackluster fourth-quarter fiscal report, Logitech announced an executive reorganization to simplify the entire organization through restructuring. Two executive management positions were eliminated completely, with one executive leaving the company on May 15.
The position of executive vice president of the products group and president of Logitech Europe has been eliminated. Junien Labrousse, the previous officeholder, has assumed the role of senior vice president of the PC, Mac, and tablet business group. Senior Vice President of Worldwide Sales and Marketing Werner Heid has lost his job with the elimination of his position. Heid will be departing Logitech effective May 15. The elimination of one executive managerial position and consolidation of brand management is expected to result in a cost savings of $80 million in annual operating costs.
For Logitech's fiscal year 2012 that ended on March 30, the company's total sales were $2.32 billion, down $40 million from 2011. Net income for FY 2012 was $71 million, down 44 percent from fiscal year 2011. Gross margin dropped from 35.4 percent in FY 2011 to 33.5 percent in FY 2012. Improvements in the organization and processes of Logitech are expected to improve financial performance by the second half of fiscal year 2013.