Tech & Biz

Philips to cut 4,500 jobs as profits slip by 85%

by liamssoft | October 17, 2011 at 07:34 am

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Europe's biggest consumer electronics producer and the largest global manufacturer of light bulbs, announces plans to axe 4,500 staff.
The firm blames spiralling raw materials costs and competition from Asia for nose-diving earnings. Third quarter net profit at Philips stands at €74m, a two-year low, down from €524m in 2010. To boost the balance sheet in the next quarter, Philips has begun a drastic €800m cost-cutting scheme.

Alongside the redundancies, which should bring in around 60% of the savings, Philips will also offload its discontinued TV business to Hong-Kong-based TVP.

Philips employs 116,000 people across the world, including 2,200 in the UK.

The company's UK facilities are located in Guildford, Surrey; Hamilton, South Lanarkshire; and Chichester, West Sussex.

Of the 4,500 job cuts, 1,400 will go in the Netherlands. Where the remaining 3,100 jobs will be lost has yet to be announced.

bbc.co.uk