Logitech will be fine, as this is about profit, not revenue. I.e. they're still turning a profit, despite millions in acquisitions. But a massive wave of layoffs doesn't seem terribly warranted. From an accounting perspective, they'll boost their financial situation in the short term. But from an economist's perspective, they're getting rid of a major set of assets, and may be hurting themselves in the long run. Good strategic decisions are based on economics rather than accounting. I'm guessing they're either doing this because they're worried about the reactions from their shareholders, or because they were already planning on letting a number of people go, and this climate is a good cover. ...and Fod's totally right. Quality's generally the way to go.