Electronics giant Philips today reported a big slump in third quarter profits and said it was cutting 4,500 jobs in a bid to reduce costs by €800m.
The maker of household electrical and medical equipment reported profits of €76m for the July to September quarter, down from €524m for the third quarter of 2010. Analysts had forecast a profit of €51.6m.
Philips, which employs 120,000 people, reported a net loss of €1.35 billion for the second quarter. The company said the slump in third-quarter profits was due to lower sales and €54m in losses in its television division, which it has put up for sale.
The company said job losses were inevitable as Philips sought to remain competitive. "The cost savings programme will lead to the loss of approximately 4,500 jobs, which is a regrettable but inevitable step to improve our operating model to become more agile, lean and competitive," it said.
