Royal Philips Electronics To Cut 2,200 More Jobs By 2014
September 11, 2012 11:26 PM EST
Royal Philips Electronics NV, the largest maker of lights, said Tuesday it plans to cut another 2,200 jobs by 2014 to save €300 million ($383 million) per year as economic conditions deteriorate.
Ahead of an investor event in London, Chief Executive Frans van Houten said in a statement that saving money will lessen "the effects of macro-economic headwinds and changes in pension cost accounting."
The Dutch electronics company didn't mention how many jobs would be eliminated from the Netherlands, which holds a national election on Wednesday, where job losses are among the main campaign issues.
Philips announced the first round of 4,500 job cuts will occur on Oct. 1, and 200 of them will be on home turf. Philips had 121,801 employees worldwide at the end of the second quarter, 14,000 of them in the Netherlands.
The additional savings announced Tuesday will bring total savings from the program to €1.1 billion, from its previous target of €800 million.
Van Houten, who took the helm at the Amsterdam-based company in April last year, has been forced to issue two profit warnings, reset financial targets, slash thousands of jobs and replace his entire top executive team, as weak consumer demand and austerity measures hurt sales in its consumer lifestyle and health care unit.
American depository receipts of Koninklijke Philips Electronics NV (NYSE: PHG) rose 1.04 percent in Tuesday's premarket trading.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Fears Of Infection Spread Prompt Some US Hospitals To Refuse Ebola Patients
- Readers Slam a Book Showing That US Wealth And Power Rests on Slave Labour
- LG G Watch R To Be Available Globally Starting With Europe, North America And Asia Through Retail Sites And Play Store
- Young Teen Fighter Says ISIS Uses Drugs On Suicide Bombers To Get Them Perform The Act
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS