Bloomberg News

Philips to Announce Job Cuts at Dutch Lighting Division Today

December 15, 2011

Dec. 15 (Bloomberg) -- Royal Philips Electronics NV, the world’s biggest maker of light bulbs, said it will outline a first round of job cuts in the Netherlands at its lighting unit today as part of a global spending-reduction drive.

“We will make some announcements in Eindhoven regarding the restructuring measures,” Eric Drent, a Philips spokesman in the Dutch city, said by phone. As many as 170 positions could be eliminated, said Ron van Baden, an official at the FNV Bondgenoten labor union.

The measures are part of a bigger overhaul that Amsterdam- based Philips announced in October involving 4,500 jobs worldwide in a 800 million-euro ($1.04 billion) savings drive. Chief Executive Officer Frans van Houten is working to improve efficiency as Philips battles slowing market growth in lighting and consumer-electronics and increasing competition from lower- cost manufacturers in Asia.

About 1,400 jobs are likely to be cut in the Netherlands, Van Houten said at the time.

The CEO, who took the helm in April, is also the acting head of the lighting unit after division chief Rudy Provoost left to become CEO of Rexel SA.

--Editors: Tom Lavell, Jerrold Colten

To contact the reporter on this story: Maaike Noordhuis in Amsterdam at mnoordhuis@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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