Dutch electronics group to axe thousands of jobs globally after 85% plunge in profits
Philips Electronics said it will cut 4,500 jobs as it reported an 85% slump in third-quarter net profit on higher restructuring and raw material costs.
Dutch group Philips – the world's biggest lighting maker, a top three hospital equipment maker, and Europe's biggest consumer electronics producer – also said it is considering alternative options for its TV unit.
The company added that negotiations with Hong Kong-based TVP to sell off most of its TV business are intense and constructive and taking longer than expected.
"For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options," said Frans van Houten, chief executive, in a statement on Monday.
Philips will aim to cut 4,500 jobs as part of an €800m (£700m) cost-cutting scheme to boost profits and meet its financial targets.
On Monday the firm reported third-quarter net profit of €76m, down from €524m a year ago on sales of €5.39bn, down from €5.46bn.
Analysts in a Reuters-commissioned poll had expected third-quarter net profit of €53.8m on sales of €5.341bn.
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Philips Electronics said it will cut 4,500 jobs as it reported an 85% slump in third-quarter net profit on higher restructuring and raw material costs.
Dutch group Philips – the world's biggest lighting maker, a top three hospital equipment maker, and Europe's biggest consumer electronics producer – also said it is considering alternative options for its TV unit.
The company added that negotiations with Hong Kong-based TVP to sell off most of its TV business are intense and constructive and taking longer than expected.
"For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options," said Frans van Houten, chief executive, in a statement on Monday.
Philips will aim to cut 4,500 jobs as part of an €800m (£700m) cost-cutting scheme to boost profits and meet its financial targets.
On Monday the firm reported third-quarter net profit of €76m, down from €524m a year ago on sales of €5.39bn, down from €5.46bn.
Analysts in a Reuters-commissioned poll had expected third-quarter net profit of €53.8m on sales of €5.341bn.
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