Philips to cut 4,500 jobs as profits fall 85%

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Philips 21X9  Platinum Angle.JPGIt’s a tough economic climate for all out there in the working world today, and the tightening of purse strings extends to multi-million dollar businesses too. Philips have just revealed some harsh financial figures, leading to inevitable job losses.

The third quarter of this year saw Philips’ profits fall a massive 85%. Compared to the same period last year, Philips’ profits are down from a healthy €524 million (£459 million) to just €76 million (£66.5 million).

As a result, some 4,500 jobs are expected to be cut in an effort to save £700 million.

The warning signs have been there for a little while when it comes to Philips fortunes. Philips announced back in April that part of its television arm would be sold off to TVP of Hong-Kong.

But now even that cost-cutting sale is floundering, with the Netherlands-based Philips’ position as Europe’s largest consumer tech force left hanging in the balance.

“For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options,” said Philips’ CEO Frans van Houten.

via: The Guardian

Gerald Lynch

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