Logitech just took to the wires to announce an “organizational alignment” that will closely focus on new “strategic priorities”. This “alignment to the strategic priorities” will save Logitech approximately $16 to $18 million in operating expenses this year alone but requires a “workforce reduction”. So, you know, “layoffs”.
According to the press release, Logitech is increasing its focus on mobile products and improving profitable in PC-related products, which shouldn’t come as a large surprise. Logitech, the once and probably still king of PC accessories, has as of late already focused on mobile products. Besides the standard refreshes of their keyboards and mice, Logitech hasn’t exactly pushed PC accessories into new markets recently.
Logitech has been playing the PC game for decades. Remember playing X-Wing vs TIE Fighter with a purple Wingman? How about the Trackman Marble mouse? That model came out in 1995. Or the round QuickCam that became the ubiquitous in the late ’90s? Logitech built its company on the back of the PC, but it’s time to move on.
Logitech just released the iPad mini version of its absolutely fantastic iPad Ultrathin Keyboard Cover. Along with the Tablet Keyboard for Win8/RT, Logitech’s tablet products are showing that content consumption devices like the iPad can be proper work machines with the right companion wares. Much like Logitech recognized early on with the PC, mobile is the future and it’s best to get in on the market early.
In short, the PC is dying and Logitech is smart to shift focus now.
“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 said in a released statement. “These actions support our goals to develop outstanding mobility- and PC-related products, streamline our cost structure and achieve faster times to market.”
On on January 1st, 2013 Darrell became Logitech’s CEO, succeeding Guerrino De Luca, who now serves as the chairman of the board. This leadership transition was in the works since Darrell joined the company last April. Change is hard especially when jobs are lost, but this is seemingly the right move for Logitech.
But as Logitech shifts focus away from PCs, there will be an opportunity for hardware startups to fill the void. Logitech will still make and sell products for desktops, but it’s probably safe to expect less innovation. We’re looking at you, SteelSeries and Razer. It’s your time to shine.