Philips reports slump in Q3 profits, 4,500 job cuts
Electronics giant Philips reported Monday a sevenfold slump in third quarter profits and said it was cutting 4,500 jobs in a bid to reduce costs by 800 million euros ($1.09 billion).
The maker of household electrical and medical equipment reported profits of 76 million euros for the July-September quarter, down from 524 million euros for the third quarter of 2010.
Analysts polled by Dow Jones Newswires had forecast a profit of 51.6 million euros.
Philips, which employs 120,000 people, reported a net loss of 1.35 billion euros for the second quarter.
In a statement, the company said the slump in third-quarter profits was due to lower sales and 54 million euros 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," the firm said in a statement.
© 2011 AFP