Switzerland-based Logitech, which also has offices in Fremont, California, has about 3,500 salaried employees in a total work force of about 9,000.

The company also withdrew its previous fiscal 2009 forecasts for sales growth of 6 to 8 per cent and operating income growth of 3 to 5 per cent. It did not provide revised targets and said it plans to update investors on its outlook during its third-quarter results briefing on Jan. 20.

"During the December quarter, the retail environment deteriorated significantly," said Gerald P. Quindlen, Logitech's president and chief executive officer. He added in a statement that "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."

Logitech said it will book a restructuring charge for the job cuts in its fiscal fourth quarter. It said it will detail the charge when it issues its third-quarter results.