Media reports, Logitech today announced the third-quarter earnings reports. The company reported third-quarter profit dropped 70 percent, while plans to cut 600 jobs.

Ended December 31 in the third quarter, Logitech net profit from the same period last year to 133.6 million U.S. dollars fell 40.5 million U.S. dollars, earnings per share fell from 71 cents to 22 cents. Revenue down 16 percent to 627.5 million U.S. dollars. Logitech profit and revenue were not met analyst expectations. Logitech Analysts expected third quarter earnings per share of 44 cents, revenues of 703.4 million U.S. dollars

Logitech said that in view of the quarter will be further decline in profits, the company plans to cut 600 jobs. Logitech CEO Gerald P. Quindlen said, “because of weak demand as customers continued to reduce inventory, our business will be subject to further shocks. All indications are that the next few months will be more weakness in the retail market.”

Logitech Third quarter gross profit margin from the same period last year fell 36.9 percent to 29.9 percent. Swiss asset management company Kepler Capital Markets analyst Roger Steiner said today that “the most worrying is the decline in profit margins. As a result of an increase of 34 percent stocks, Logitech future capacity utilization and reduce outsourcing flexibility are of concern. ”

Logitech said that fourth-quarter revenue and operating profit margin will decline in the third quarter similar. Logitech third quarter operating profit fell 63% to 43 million U.S. dollars. Logitech also said that in the reduction of 550-600 jobs, the company the next 12 months will be spent over 24 million U.S. dollars restructuring charges. Logitech will be the fourth quarter provision for restructuring costs of 18 million U.S. dollars.

Logitech said that the layoffs will help the company reduce the annual cost of about 50 million U.S. dollars.