Logitech International, the world’s largest computer mouse maker, said today it is cutting 15 per cent of its non-manufacturing jobs and withdrawing its 2009 financial forecasts amid a slowdown in computer goods sales.

The Switzerland-based group plans to axe 500 positions and may also reduce its 5,500 factory jobs in a bid to cut costs, predicting "an extended downturn". The company has about 3,500 salaried employees in a total work force of about 9,000.

Guerrino De Luca, Logitech’s chairman, told Bloomberg today: “The situation is really bad. We’re on really shaky grounds with the consumer. The situation is really unprecedented.”

Logitech, which also makes speakers, keyboards and webcams, had already cut its financial targets in October from 15 per cent sales growth and operating income growth, to 6 to 8 per cent and 3 to 5 per cent respectively, citing the deteriorating economic environment.

The company has not given revised targets. It said it will update investors on its outlook when it releases its third quarter results on January 20.

"During the December quarter, the retail environment deteriorated significantly," Gerald Quindlen, Logitech’s chief executive said in a statement. “We expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn,” he added.

Goldman Sachs estimated last month that worldwide spending on information-technology products would shrink 4 per cent this year as the global economy contracts.

Logitech said it would take an unspecified one-time restructuring charge for the job cuts in the fourth quarter ending March 31.

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