PDA

View Full Version : How worried should I be?



Millwood
2009-01-06, 07:47
FREMONT, Calif. (AP) - Logitech International SA (LOGI) (LOGI), a maker of mice, webcams and other computer peripherals, said Monday it is cutting its salaried work force by 15 percent in response to weak consumer demand amid what it expects to be an extended global downturn.

simbo
2009-01-06, 07:57
Also on The Register: http://www.channelregister.co.uk/2009/01/06/logitech_job_cuts/

IMHO, I wouldn't worry too much (unless you work for LT...). All industry sectors are being hit by the global downturn, but the technology sector is bearing up better than most. These kinds of reductions are to be expected, and show that LT aren't burying their heads in the sand like many companies are.

I certainly wouldn't hold off on Squeezebox purchases based on this story... that won't help at all!

aubuti
2009-01-06, 08:00
Worried about what? Although it no doubt sucks for the laid off workers, it's probably a reasonable and even prudent response to the slowdown in demand. Your bank, supermarket, automaker, public utility, and maybe even your employer are probably also cutting jobs.

maggior
2009-01-06, 08:30
Some of you may have noticed that a few months ago there was a job posting for a senior software engineer on the slim devices website. Shortly after the meltdown on wall street, this posting disappeared from the website. I learned that they had entered a hiring freeze. As things didn't improve economically, the next logical step is layoffs.

Hopefully the slim devices team is unaffected by the layoff.

I don't worry about being laid off...I already was :-). My heart goes out to the affected employees - I feel your pain.

Regarding the impact on the squeezebox product - hopefully it doesn't get any worse than stretched out schedules and delayed features and fixes.

aubuti
2009-01-06, 08:50
Sorry to stray off-topic, but things have gotten bad enough overall that there are even new eupemisms for sackings/layoffs/downsizing/redundancies/reductions-in-force/etc. Those LT employees aren't being laid off, they're being "upgraded". From the Financial Times recent article on 'business twaddle' (http://www.ft.com/cms/s/0/3a41f80a-d8d3-11dd-ab5f-000077b07658.html):

● In recognition of the economic climate the judges are giving a special award this year for Best Term For Sacking People. An honorary mention goes to the new phrase “dynamic rightsizing”, which means regular sackings, only more exciting and souped-up. The winner, for its sheer disingenuity, goes to “upgrade”. A reader reports that when she was fired by her US company in mid-2008 she was told: “We are going to upgrade you with immediate effect. We are going to allow you to move on in order that you can you use your talents and skills more effectively and thus upgrade your career and opportunities.

funkstar
2009-01-06, 09:07
Some of you may have noticed that a few months ago there was a job posting for a senior software engineer on the slim devices website. Shortly after the meltdown on wall street, this posting disappeared from the website. I learned that they had entered a hiring freeze. As things didn't improve economically, the next logical step is layoffs.
Hiring freezes are often dictated company wide to keep shareholders happy. This does have the side effect of preventing departments or devisions that _really_ need to hire people from doing this and can stifle that department. I remember my dad telling me about one of his departments that really needed to hire some technicians, but there was a company wide hiring freeze, they could show that without these people they were missing out on millions of dollars of potential work, took the months to get it sorted out.

funkstar
2009-01-06, 09:09
Or another point of view is that being part of Logitech is better than being indipendant, providing Logitech is profitable and remains solvent. They will be able to arange investment in their Streaming Media Devision far easier than the SlimDevices of old would have been.

pippin
2009-01-06, 09:34
how was this movie subtitle

How I stopped worrying and learned to buy more Booms...

iPhone
2009-01-06, 09:43
FREMONT, Calif. (AP) - Logitech International SA (LOGI) (LOGI), a maker of mice, webcams and other computer peripherals, said Monday it is cutting its salaried work force by 15 percent in response to weak consumer demand amid what it expects to be an extended global downturn.

The more people talk about a down economy the closer and deeper it gets. Other then a few more foreclosure For Sale signs (98% of these were sold to people that should never have been given a loan in the first place, thanks to Acorn), I have seen no real indications of any downturn! I still have to wait in line to pay for my groceries. We had to stand in line to pay for our goods at Target and Wal-Mart over the weekend (and they were both well staffed at the registers and staff were re-stocking shelves). I even had to wait in line at Home Depot (and they are supposed to be hard hit) and on Saturday they were giving away free lunch! We had to wait for a table last night at the restaurant on a Monday night.

I will get worried when I breeze though the register or don't see anybody else in the stores with full shopping carts. Or if I don't have to wait for a table and nobody else is eating or at the bar. Have I seen some restaurants close, I have and almost all were ones I never go to twice because they were not worth eating at? In fact, my favorite Barbeque place has been busier then he has been in years and has hired additional staff.

davidjames
2009-01-06, 10:28
I will get worried when I breeze though the register or don't see anybody else in the stores with full shopping carts. Or if I don't have to wait for a table and nobody else is eating or at the bar. Have I seen some restaurants close, I have and almost all were ones I never go to twice because they were not worth eating at? In fact, my favorite Barbeque place has been busier then he has been in years and has hired additional staff.You anecdotes are thoroughly trumped by the (un)employment data, financial reports, bankruptcies and outright closures of businesses across the country.

mvalera
2009-01-06, 11:08
There is no need to worry.

Logitech is fully behind the Squeezebox products. The announced restructuring will not change that.

Also that job was filled, so that's why it was taken down.

Mike

4mula1
2009-01-06, 11:43
We'll know it's serious at SD when a job opening for Web Monkey is posted.

It could only mean that the old Web Monkey was "upgraded" to Trunk Monkey...

Goodsounds
2009-01-06, 12:33
You anecdotes are thoroughly trumped by the (un)employment data, financial reports, bankruptcies and outright closures of businesses across the country.

Precisely, I was perhaps equally amused by the comments.

For those with no access to print media, talk to someone who works in banking or finance, real estate, manufacturing, or consumer products,etc, to understand what is happening. Trying to find evidence is not hard, but looking around in a Walmart or a barbeque restaurant doesn't quite cut it.

Oh, and in the US, restaurants have the highest rate of business failure within the first two years of any type of business. That's not new, it's been this way forever. That's why this person sees them open and close.

Goodsounds
2009-01-06, 12:41
There is no need to worry.

Logitech is fully behind the Squeezebox products. The announced restructuring will not change that.

Also that job was filled, so that's why it was taken down.

Mike

Because 2009 is an earn-out/payout year for the SD acquisition by Logitech, I'll bet that Logitech has less flexibility (contracturally or otherwise) to "restructure" or RIF people with respect to this business unit. Compared to other parts of the company. At least until 12/31/09.

sleepysurf
2009-01-06, 20:41
Just read that Logitech is cutting it's salaried employees by 15%...
http://tech.yahoo.com/news/ap/20090106/ap_on_hi_te/logitech_job_cuts

I certainly hope that Slim developers/staff aren't on the chopping block.

EnochLight
2009-01-07, 12:36
Yikes... I hope this doesn't mean bad things for Slim Devices. Please tell me you guys are OK?

ORIGINAL STORY (http://www.dailytech.com/Logitech+to+Cut+15+of+Global+Workforce/article13873.htm)

aubuti
2009-01-07, 13:14
Yikes... I hope this doesn't mean bad things for Slim Devices. Please tell me you guys are OK?

ORIGINAL STORY (http://www.dailytech.com/Logitech+to+Cut+15+of+Global+Workforce/article13873.htm)
See http://forums.slimdevices.com/showthread.php?t=57742

Mark Lanctot
2009-01-07, 13:16
See http://forums.slimdevices.com/showthread.php?t=57742

Already merged, along with another thread.

corbey
2009-01-07, 13:25
The more people talk about a down economy the closer and deeper it gets. Other then a few more foreclosure For Sale signs (98% of these were sold to people that should never have been given a loan in the first place, thanks to Acorn)...

Please get a grip. Acorn doesn't make loans; it was the greedy bankers.

My company, one of the largest and most profitable in Silicon Valley, hasn't had mass layoffs, but they have implemented a hiring freeze and let go all the contractors. If things don't improve, we full-time employees could be next, and we're ALL worried.

Siduhe
2009-01-07, 13:49
Precisely, I was perhaps equally amused by the comments.

For those with no access to print media, talk to someone who works in banking or finance, real estate, manufacturing, or consumer products,etc, to understand what is happening. Trying to find evidence is not hard, but looking around in a Walmart or a barbeque restaurant doesn't quite cut it.

Oh, and in the US, restaurants have the highest rate of business failure within the first two years of any type of business. That's not new, it's been this way forever. That's why this person sees them open and close.

I don't disagree with anything you say, but I suspect there are a number of posters who are old enough to have worked through the 80-82 and 90-91 recessions and seen many of the same things. Despite what I have heard commentators say in the print media recently, they were just the same as this (at least from the banking/finance/manufacturing/real estate perspectives) at least so far, and the predictions just as gloomy. I was in my first job out of college and absolutely bricked myself thinking that life was over. Am a bit wiser now, and have taken the precaution of building up six months of mortgage payments and bills in savings ever since (appreciate that isn't achievable for everyone but it's a good habit to have).

The thing that is perhaps different about this one is the impact of globalisation which simply wasn't the same factor back then. At this point it's impossible to say if the current recession will follow the familiar track or twist off into something new - but so far I've not seen anything that new.

EnochLight
2009-01-07, 13:52
The more people talk about a down economy the closer and deeper it gets. Other then a few more foreclosure For Sale signs (98% of these were sold to people that should never have been given a loan in the first place, thanks to Acorn), I have seen no real indications of any downturn! I still have to wait in line to pay for my groceries. We had to stand in line to pay for our goods at Target and Wal-Mart over the weekend (and they were both well staffed at the registers and staff were re-stocking shelves). I even had to wait in line at Home Depot (and they are supposed to be hard hit) and on Saturday they were giving away free lunch! We had to wait for a table last night at the restaurant on a Monday night.

I will get worried when I breeze though the register or don't see anybody else in the stores with full shopping carts. Or if I don't have to wait for a table and nobody else is eating or at the bar. Have I seen some restaurants close, I have and almost all were ones I never go to twice because they were not worth eating at? In fact, my favorite Barbeque place has been busier then he has been in years and has hired additional staff.

Just because you seem to perceive business being conducted as normal, trust me - the profits are not there. I have several friends in retail sales and I myself am in asset property management - these last 6 months have been brutal. Most of my competitors have dropped their full-time staff to part time and we're suffering huge financial losses compared to even our worst year in the past.


You anecdotes are thoroughly trumped by the (un)employment data, financial reports, bankruptcies and outright closures of businesses across the country.

I couldn't have said it better!


There is no need to worry.

Logitech is fully behind the Squeezebox products. The announced restructuring will not change that.

Also that job was filled, so that's why it was taken down.

Mike

That's great news Mike; very good to hear. Here's to a profitable 2009!


...My company, one of the largest and most profitable in Silicon Valley, hasn't had mass layoffs, but they have implemented a hiring freeze and let go all the contractors. If things don't improve, we full-time employees could be next, and we're ALL worried.

That sums up pretty much most of the large businesses in my part of the country (Michigan). Unemployment is projected to hit almost 10% here - a very frightening thought!

Cheers,

EnochLight

rainjacks
2009-01-07, 13:55
For anyone worried about Logitech and the future of Squeezebox there is a very simple solution. Purchase more Logitech and Squeezebox products!

Note: I'm not a Logitech employee

I also sympathize with those who have lost their jobs. I've been there before and will probably be there again.

Goodsounds
2009-01-08, 11:07
I suspect there are a number of posters who are old enough to have worked through the 80-82 and 90-91 recessions and seen many of the same things.

Like me ;-)


Despite what I have heard commentators say in the print media recently, they were just the same as this (at least from the banking/finance/manufacturing/real estate perspectives) at least so far

Each downturn has had a different cause. This one seems worse to me, with a more precipitous plunge.


and the predictions just as gloomy.

Yeah, but for those who have already lost jobs, "gloomy" is more than a prediction.


I was in my first job out of college and absolutely bricked myself thinking that life was over. Am a bit wiser now, and have taken the precaution of building up six months of mortgage payments and bills in savings ever since

Good idea


The thing that is perhaps different about this one is the impact of globalisation which simply wasn't the same factor back then.

Big business has been multinational for eons, nothing new there. Compared to 10 years ago or more, the only real change today is the growth and continuing development of China and India, and the huge output of manufactured goods from the developing to the developed world.

To me, the word "globalization" is more a political term than a financial one, and one usually with an intended negative connotation. For those who use it, I've never quite understood what their concerns are, what ills they seek to fix, and what alternatives are proposed. Maybe you could explain for me.


At this point it's impossible to say if the current recession will follow the familiar track or twist off into something new - but so far I've not seen anything that new.

In the US, it's been rather different from past downturns. Federal governmental action - bailouts, loans and guarantees, etc., is more familiar abroad but very rare in in the US at such a large scale. The failures and disappearances of (what were thought to be) companies representing (some of)the American business establishment is remarkable. Maybe more to come.

Siduhe
2009-01-08, 11:50
To me, the word "globalization" is more a political term than a financial one, and one usually with an intended negative connotation. For those who use it, I've never quite understood what their concerns are, what ills they seek to fix, and what alternatives are proposed. Maybe you could explain for me.


I don't mean it in a negative way particularly, the benefits of globalisation for many of the parties in the supply chain (not necessarily all of them mind you) are well documented. It is a a term which is often used in a quasi-political sense as well - there are lots of articles (media and academic) which say it has caused everything from the ills of certain developing countries to the spread of Al Qaeda.

http://www.time.com/time/nation/article/0,8599,182746,00.html

I very much had the financial markets in mind when I posted. Banks in general, and investment banks in particular, have actively pursued globalisation as a strategy. They are present in multiple jurisdicitions and have wide exposures across the majority of markets, which is different certainly from the 90s.

Essentially, globalisation has created a situation of economic interdependence between countries that has not occured previously. I am not qualified to judge whether this is a good or bad thing in terms of getting out of where we are now.

Also very much take your point about this being perhaps a new arena in some ways for the US, which has traditionally been much more independent from import/export risks, and therefore more self-sufficient in a recession, than the UK or Europe.

radish
2009-01-08, 12:30
I will get worried when I breeze though the register or don't see anybody else in the stores with full shopping carts. Or if I don't have to wait for a table and nobody else is eating or at the bar. Have I seen some restaurants close, I have and almost all were ones I never go to twice because they were not worth eating at? In fact, my favorite Barbeque place has been busier then he has been in years and has hired additional staff.
My income has gone down about 50% this year, which isn't fun right after getting married & buying a house. Lots of purse-string tightening - TP on ebay :(. Having said that, I still have a job unlike many of my friends and colleagues, so I guess it's not all bad. Maybe I should come down your way and open a BBQ place?

Goodsounds
2009-01-08, 16:27
Siduhe-
(interesting name, whatever its origin),

I think our opinions differ, but that's ok. It's what makes conversations interesting and worthwhile. I would offer the following comments to yours:

-Some say that one reason for the unrest in some parts of the world, and the embrace of fundamentalist religious views, is because of a lack of economic opportunity. Maybe so, and if so, I hope educational and economic opportunites can be made available to more people. However, that doesn't explain the spread of fundamentalist views in places like the US of A ! Help, I'm surrounded!

-Multinational banking is much older than you say. As just one trivial example, I think Citibank was one of the largest banks in South America in, what, the 1960s and 70s? It had offices all over the world before WWII. And far from the only bank to do so. Early in my career, I-banking in NY/London/Europe/Asia long was mostly local and much less multinational than other sectors, but because of protectionist legislation. That opened up when laws changed, it would have happened sooner otherwise. But also this was not in the last 10 years.

-International economic interdependence and cross border investment have been around for centuries. The Atlantic slave trade triangle is an example. The "cotton trade" in Liverpool was part of this too at one point, it isn't as if cotton is grown around Merseyside! The American colonists wanted more freedom to trade than was granted under British rule. My point - little is new here, other than more hoopla in the press.

-My US comment was not about cross border trade, but rather government intervention in the private sector. Other countries in the developed world have a greater history, and I guess presumably a greater acceptance, of government ownership/intervention/control of private sector enterprises. Not so in the US, and it will be interesting to see how far it goes and how long it is tolerated. My guess is that acceptance will wane after the gloom passes.

Again, we seem to have different views, I wanted to be sure you understood mine. I think I understand yours, and since we started on the economic downturn, let's hope all the bad news is out and that the good news is right around the corner.

toby10
2009-01-09, 05:04
..... and since we started on the economic downturn, let's hope all the bad news is out and that the good news is right around the corner.

There are some very serious hits still to come. This isn't over by a long shot. Just one example: there is a BIG banking/mortgage problem still looming out there that hasn't hit the books yet, and will be greater than the sub-prime problem we haven't fully flushed yet. :(

Put on your seat belts, it's a very bumpy ride ahead.