Philips to Axe Another 2,200 Jobs to Accelerate Overhaul

By FOXBusiness

Philips Electronics (NYSE:PHG) plans to cut another 2,200 jobs as it looks to realize more cost savings as part of a massive overhaul and reach revenue goals in 2013.

The announcement, made ahead of an investor event in London on Tuesday by Chief Executive Frans van Houten and confirmed by a company spokesman, will save about 300 million euros.

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The cuts come on top of 4,500 announced in October and bring the Dutch company’s target on cost savings to 1.1 billion euros from 800 million euros previously.

Philips has been reducing staff and streamlining the business through divestitures after losing 1.3 billion euros in 2011.

“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," van Houten said, according to a report by Reuters.

The world’s biggest lighting maker reported stronger-than-expected quarterly earnings in July and increased sales in all of its divisions despite the financial turmoil in Europe, a sign the company’s turnaround efforts have started paying off.

Philips says it remains on track to meet its 2013 midterm financial targets of sales growth between 4% and 6% and said the latest round of cuts will help it reach that goal.