PHILIPS PLANS TO CUT UP TO 7,000 JOBS DUE TO LOW PRODUCT DEMAND
Philips Electronics, Europe’s largest manufacturer of electronics, including security equipment, plans to cut 6,000 to 7,000 jobs to offset a slowdown in demand for its products. Company officials say net profits plunged to 106 million euros ($93.3 million) in the first three months of the year, compared with 1.14 billion euros in the first quarter of 2000.
The job cuts were announced late Tuesday as the company reported an unexpected 91-percent drop in first-quarter earnings and warned it may post a net loss in the second quarter, although no estimates have been announced. Jan Hommen, Philips’ CFO, says “There are no signs that the slowdown in economic activity in certain parts of the world, particularly the United States, is near its end.”
Philips will spend around 350 million euros ($308 million) in the second quarter to cut jobs from its total workforce of approximately 219,000. No specific countries have been targeted for the job losses.
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