Philips to cut 300 jobs at Research unit

AMSTERDAM: Dutch Philips Electronics NV, which is busy cutting costs to cope

with slumping demand for key products, said on Thursday it would axe 300 jobs at

its Philips Research unit as part of a restructuring program.

The restructuring, to be completed during the course of 2003, will cut 10 per

cent of the unit's total workforce, Philips said in a statement.

Philips, which has said it will cut about 11,000 of its 210,000 strong staff

worldwide, is slashing costs to adjust to the slumping demand for semiconductors

and consumer electronics.

Philips Research develops product innovations for all Philips product

divisions. Its main laboratory is in Eindhoven, the Netherlands, but it also has

facilities elsewhere in Europe, in Asia and in the United States.

After the relocation, Philips Research will be present in as few locations as

possible, the company said. The cuts would not affect longer-term research

investments, which are being centrally funded, Philips said. Philips is Europe's

largest maker of consumer electronics and lighting and number three in

semiconductors.

(C) Reuters Limited.