toggle

AAPL Stock: 112.34 ( + 4.62 )

Printed from http://www.macnn.com

Philips to axe 6,000 jobs after loss in fall

updated 03:50 pm EST, Mon January 26, 2009

Philips to cut 6,000 jobs

Philips Electronics said it will cut its global workforce to the tune of 6,000 because it posted the first quarterly loss in about six years, according to a Monday report. At the same time, the company stopped the buy-back program of its shares. The 1.47 billion Euro ($1.9 billion) loss in the fourth quarter of 2008 is partly due to a write-down of Philips' Lumildes diode light business as well as the downgrading of its shares in NXP Semiconductors and LG Display. Net losses for 2008 amounted to 186 million Euros (nearly $242 million).

Philips' president and chief executive, Gerard Kleisterlee, says the fourth-quarter losses are due to the soft economy that saw a record-low demand for the company's products, with the hardest hit businesses being its lifestyle and lighting divisions. As a result, Kleisterlee says Philips' management is giving "absolute priority to cash flow, where necessary at the expense of operating profits."

Philips has cut 3,000 jobs in the fourth quarter, and will cut another 6,000 positions during 2009, which would cost 400 million Euros ($525 million).




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Blue Yeti Studio

Despite being very familiar with Blue Microphones' lower-end products -- we've long recommended the company's Snowball line of mics ...

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

toggle

Most Commented