Philips to cut 4,500 jobs as part of $1.1-bn cost-cutting plan
18 October 2011
Philips Electronics, Europe's biggest consumer electronics company is to cut 4,500 jobs globally as part of its €800-million ($1.1 billion) cost-cutting plan.
The Amsterdam-based company, which makes products like medical scanners, shavers, kettles and lighting, said the cuts are mainly going to be in functions like IT, finance, real estate, human resource, manufacturing and supply chain.
The company, which competes with US-based General Electric and Germany's Siemens AG, will axe 1,400 positions in the Netherlands. The newly announced job cuts are in addition to its 6,000 previous job reduction programme announced in 2009.
Cuts are likely to come at its Indian operations, but the company said that it is still working out the number of jobs which will be impacted in India.
According to some media reports, around 200 jobs will be affected in India. Philips currently employs 9,000 people in the country at its two global research centres in Noida, software development at Bangalore and at companies it has acquired in India.
Philips, the world's largest lighting equipment maker, reported an 85-per cent decline in third quarter net profit to €74 million, from €524 million a year earlier. Sales were down 1.3 per cent to €5.39 billion due to low consumer demand in Europe and competition from Asian manufacturers, especially in the TV segment.