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Royal Philips Electronics to reduce headcount

Royal Philips Electronics to reduce headcount
PTI
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First Published: Mon, Jan 26 2009. 07 01 PM IST
Updated: Mon, Jan 26 2009. 07 01 PM IST
London: Royal Philips Electronics Monday said it will cut 6,000 jobs across the globe and its net loss for the fourth quarter ended 31 December stood at €1,470 million due to lower gains on stake sale.
“The biggest electronics consumer group of Europe would eliminate 6,000 jobs around the world,” Bloomberg said.
However, the company said in a statement during the quarter the number of employees had declined by 6,613 due to both seasonal and restructuring-driven personnel reduction.
The net loss is reportedly the first ever of the diversified conglomerate since 2003. However, the company had a net income of €1,398 million in the same quarter last year.
“Our fourth-quarter results are a reflection of both the severe impact of the global financial and economic crises and the decisive actions taken by management,” Royal Philips Electronics president and chief executive officer Gerard Kleisterlee said.
Financial income and expenses declined due to lower gains on the sale of stake in Taiwan Semiconductor Manufacturing Company Limited, and €1.3 billion impairment charges related to NXP (semiconductor company founded by Philips), LG Display, Toppoly and Pace Micro Technology, the release said.
Sales of the company declined to €7,623 million for the quarter under review, while the corresponding figure was €8,365 million for the same quarter last year.
“The development of our quarterly results reflects the unprecedented speed and ferocity with which the economy softened in 2008. This prevents us from looking too far into the future,” Kleisterlee added.
Further, anticipating this environment, Kleisterlee said,“We proactively extended our restructuring plans and sharpened our cash management.”
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First Published: Mon, Jan 26 2009. 07 01 PM IST