Philips to cut 4,500 jobs
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The Dutch lighting firm Philips has annouced 4,500 job losses, 1,400 in the Netherlands, in a bid to make €800m savings.
The cutbacks come despite an overall 6% growth in sales according to third quarter results.
The company's "Accelerate!" cost-savings programme targets €800 million in savings and aims to cut overhead costs.
About 60% of the savings are people-related and will result in the job cuts. The remaining 40% relate to other structural costs.
CEO Frans van Houten said the lost jobs were a "regrettable but inevitable step to improve our operating model to become more agile, lean and competitive".
He said: "Our cost reduction plan of EUR 800 million has now been detailed, and we are in the process of deploying it across the organization as we optimize all overhead and support costs not directly involved in the operational customer value chain."
Philip's Healthcare registered growth of 7% and Consumer Lifestyle businesses showed high-single-digit sales growth.
Philip's Lighting division grew by a strong 8%, driven by LED at 32%.
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