11 September 2012

Philips to cut additional 2,200 jobs globally

London, UK – 11 September 2012 - At a meeting with investors and financial analysts today in London, UK, Royal Philips Electronics will update the financial markets on the developments in the Lighting and Consumer Lifestyle sectors.

As part of his company update, Philips Chief Executive Officer Frans van Houten will discuss the progress of the Accelerate! transformation program to drive innovation and customer centricity, while improving operational performance, enabling Philips to deliver on its 2013 targets. As the deployment of the Accelerate! program deepens, the company has identified additional opportunities, among others in the Healthcare and Lighting sectors, to further decrease inefficiency and complexity. These additional structural saving opportunities of EUR 300 million will bring the overall savings program from EUR 800 million to EUR 1.1 billion, to be completed by 2014, and will impact approximately 2,200 additional positions globally. 

“We continue to focus on improving the performance of our company, and we are making good progress. 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.” said Philips Chief Executive Officer Frans van Houten. “The additional savings will lead to job losses, which is regrettable. At the same time, we continue to invest in innovation and the customer value chain to speed up the introduction of meaningful innovations to our customers in local markets, making Philips more competitive.” 

Royal Philips Electronics (NYSE: PHG, AEX: PHI) is a diversified health and well-being company. Headquartered in the Netherlands, Philips posted 2011 sales of EUR 22.6 billion and employs approximately 122,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, home and portable entertainment and oral healthcare. 

Source: Philips