Logitech Realigns Organization with Strategic Priorities, Resulting in Expected Incremental Cost Savings of $16 to $18 Million

  Logitech Realigns Organization with Strategic Priorities, Resulting in
  Expected Incremental Cost Savings of $16 to $18 Million for FY 2014

Business Wire

NEWARK, Calif. & MORGES, Switzerland -- February 28, 2013

Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced an
organizational alignment to the strategic priorities outlined by newly
appointed CEO Bracken P. Darrell last month. These priorities include
increasing focus on mobility products, improving profitability in PC-related
products and enhancing global operational efficiencies. This alignment to the
strategic priorities creates incremental cost savings of approximately $16 to
$18 million in operating expenses in Fiscal Year 2014, a result of a workforce
reduction. This is in addition to the previously announced $80 million savings
in annual operating costs (operating expenses plus costs of goods sold) for
Fiscal Year 2014 related to the Company’s April 2012 restructuring.

“As we align the organization with our strategy to become a faster, more
profitable company, we have also created opportunities to become more focused,
improve operational effectiveness and even deliver additional cost savings
that will contribute to improved profitability,” said Bracken P. Darrell,
Logitech president and chief executive officer. “These actions support our
goals to develop outstanding mobility- and PC-related products, streamline our
cost structure and achieve faster times to market.”

Logitech anticipates recording a pre-tax, cash charge of approximately $12 to
$14 million in the fourth quarter of Fiscal Year 2013. The charge is related
primarily to personnel reductions, with the Company eliminating approximately
140 positions, or 5 percent of its worldwide non-direct-labor workforce.

Additional information regarding the restructuring charges is provided in
Logitech’s Current Report on Form 8-K being filed with the U.S. Securities and
Exchange Commission on March 1, 2013 and made available on Logitech’s website
at http://ir.logitech.com.

About Logitech

Logitech is a world leader in products that connect people to the digital
experiences they care about. Spanning multiple computing, communication and
entertainment platforms, Logitech’s combined hardware and software enable or
enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security
and home-entertainment control. Founded in 1981, Logitech International is a
Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq
Global Select Market (LOGI).

This press release contains forward-looking statements, including statements
regarding the timing and elements of the workforce reduction, the timing and
form of related charges, the expected annual operating expense reduction, and
Logitech’s ability to be faster, to achieve its goals, and to achieve improved
operational effectiveness, efficiencies and profitability. The forward-looking
statements in this release involve risks and uncertainties that could cause
actual events or results to differ materially from those anticipated in these
forward-looking statements. Factors that could cause actual events or results
to differ materially include: Logitech’s ability to implement the personnel
reductions in various geographies; possible changes in the size or timing of
the workforce reduction or the expected costs and charges associated with the
workforce reduction; and risks associated with Logitech’s ability to achieve
planned expense reductions and improved performance, efficiencies and
profitability; as well as those additional factors set forth under the “Risk
Factors” section and other sections in Logitech’s periodic filings with the
Securities and Exchange Commission, including our most recent Annual Report on
Form 10-K and our most recent Quarterly Report on Form 10-Q, available at
www.sec.gov. Logitech does not undertake to update any forward-looking
statements, which speak as of their respective dates.

Logitech, the Logitech logo, and other Logitech marks are registered in
Switzerland and other countries. All other trademarks are the property of
their respective owners. For more information about Logitech and its products,
visit the company’s Web site at www.logitech.com.

(LOGIIR)

Contact:

Logitech International
Joe Greenhalgh
510-713-4430
Vice President, Investor Relations – USA
or
Logitech International
Nancy Morrison
510-713-4948
Vice President, Corporate Communications – USA
or
Logitech International
Laura Scorza
+41-(0) 21-863-5336
Sr. Public Relations Manager – Europe
 
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