Dutch electronics company Philips has revealed plans to cut another 2,200 jobs worldwide and a 383.6 million USD cost savings as part of an ongoing operational improvement program.
“We continue to focus on improving the performance of our company, and we are making good progress. The identified additional overhead cost-reduction measures will help us mitigate the effects of macro-economic headwinds and changes in pension cost accounting, while making us a more agile innovation company serving our customers effectively across the world,” said Frans van Houten, CEO of Royal Philips Electronics N.V.
The extra savings unveiled on Tuesday will bring the company’s total savings from the program to 1.1 billion EUR, from the previous 800 million EUR, and will be completed by 2014.
Mr. van Houten, who became chief executive of the Amsterdam-based company in April last year, has been driven to publish two profit warnings as weak consumer demand and austerity measures, especially in Southern Europe, damaged both its consumer lifestyle and healthcare unit sales.
Image: greenbob16 via Flickr (CC)