Philips, the largest maker of lights, says it plans to cut 2,200 jobs by 2014 to save €300m per year.
Saving money will lessen "the effects of macro-economic headwinds and changes in pension cost accounting" said Philips chief executive officer Frans van Houten in a statement.
The company says it plans a fuller explanation at a press conference later today. Mr Van Houten calls the job losses "regrettable".
The job cuts will fall at the company's lighting and health care divisions.
