Well, plunged is actually a better word–or perhaps, plummeted, arms flailing–into the void. Because Logitech’s net income for the third quarter fell a horrific 70 percent to $40.5 million. Analysts polled by Dow Jones had been forecasting $82.5 million–already, quite a bit less than the $133.6 million Logitech posted last year.

So this is a precipitous drop. And it’s one that’s forced the company to announce sweeping job cuts. Logitech (LOGI) will sack between 550 and 600 employees in the coming months.

For now, Logitech is cash-rich enough to survive ugliness like this, and it will almost certainly recover. But not for a while: “All indications point to an even weaker retail environment in the coming months,” the company said in a statement. “The deepening global recession had a significant impact on our operating performance as our customers continued to reduce inventory in the face of weaker consumer demand.”

[Image Credit: Instructables]

Our industry is the one that this going to get the economy through this recession.

– Gary Shapiro, president and CEO of the Consumer Electronics Association

The International Consumer Electronics Show will kick off next week shrouded in a nimbus of recessionary gloom. Show attendance is expected to be down eight percent this year, according to Gary Shapiro, CEO of the Consumer Electronics Association, who expects 130,000 attendees to flood the convention–11,000 fewer than last year. The show floor itself will be slightly diminished as well. CES exhibitor booths required 1.8 million square feet in 2008. In 2009, they’ll take up 1.7 million, presumably thanks to the absence of Seagate (STX), Logitech (LOGI), Cisco (CSCO), Philips (PHG), Yahoo (YHOO) and Sanyo–all of which have abandoned plans to exhibit on the show floor. That said, the overall number of exhibitors will remain the same as last year, at about 2,700.

So the show will be a bit smaller and a bit less clamorous than in years past. Likely a bit more sober as well, given this rough retail year. Quite a change from the extravagance of years past, but not without a certain upside. “This is the bleakest CES in 30 years going in,” said Envisioneering Group analyst Richard Doherty. “[Some exhibitors] will be spending more of their time off the show floor. We may now be able to get between the Venetian and the convention in less than an hour.”

Not Seagate (STX).

Not Logitech (LOGI).

Not Cisco (CSCO).

Not Philips.

Not Yahoo. Obviously.

And not Sanyo, either.

All six companies have abandoned plans to exhibit on the Consumer Electronics Show floor. Like Belkin, they are all opting for the more intimate and inexpensive floorspace of a Vegas hotel room. Said Seagate spokesperson Woody Monroy, “We haven’t pulled out of CES…we’re just taking a different approach.” Cisco offered this statement on the matter:

On our Q1 FY ‘09 earnings call on November 5 we announced that we will be reducing expenses for FY09 by over $1B from our annualized expense run rate, given the challenging macroeconomic environment. We are targeting reductions in travel and discretionary-related expenses, including offsite meetings, outside services, equipment, events, trade shows, prototypes, marketing and other activities. Given this focus on reducing costs, we are modifying our participation in the Consumer Electronics Show in Las Vegas in January 2009.

We have several speakers presenting in the various CES sessions, and Cisco chairman and CEO John Chambers will be delivering a keynote at the conference, as well. We are focusing our CES presence on our direct customers, press and analysts in order to create a more intimate event and reduce expenses. We look forward to an exciting CES 2009 with multiple product announcements that will reinforce Cisco’s consumer strategy. We remain committed to the consumer market, and we believe our cost control focus at this time is appropriate. In support of our CES presence, we will be utilizing Cisco’s world-class Web 2.0 collaboration technologies, such as TelePresence and WebEx, to maintain essential customer and partner communication. Cisco will have compelling demonstration areas and meeting rooms in the Venetian hotel in Las Vegas as we have for the past several years.”