Philips adds 2,200 more job cuts
Amsterdam, Netherlands (4E) – Philips Electronics has announced it will cut another 2,200 jobs, a move to reduce operating costs of their business.
The latest move by the Dutch consumer electronics giant is in line with their planned three-year 4,500 staff reduction program from 2011 to 2014. By the end of 2011, the company reportedly employed 122,000 workers.
In a statement released Tuesday, they said that the additional structural changes will create saving opportunities for the company of around 300mn euros. Philips plans to increase their savings program from job cuts to 1.1bn euros from 800mn euros, which will be completed by 2014.
Philips CEO Frans van Houten, who took the position in April 2011, said that the job losses were “regrettable” during an analysts’ conference in London.
Mr. van Houten has already issued two profit warnings given the weak consumer demand and austerity measures in several euro zone countries, hurting sales of the company’s health-care unit and consumer lifestyle.
The Amsterdam-based company posted 1.3bn euros in losses last year, but has since rebounded with two consecutive profitable quarters.
In July, Philips announced a better than expected second quarter net profit of 167mn euros, boosted by 13 per cent increase in sales.