Philips may cut jobs in Belgium

CIOL Bureau
Updated On
New Update

BRUSSELS/AMSTERDAM: Philips, Europe's top consumer electronics group, on Friday did not rule out job cuts in Belgium as part of its plans to dissolve its components unit. But Philips spokesman in Amsterdam would not confirm a report in Belgian daily Le Soir that the company would cut 800 out of 6,500 jobs in Belgium at three of its seven sites.

"Job cuts are not the target of the reorganisation, but they cannot be excluded," said Philips spokesman Andre Manning.

Philips has been struggling to deal with the slumping demand in its key markets for semiconductors, consumer electronics and components. The group, which at the end of last year employed 188,600 workers, had announced 12,000 job cuts last year and nearly 2,000 more so far this year.

Philips shares were up 3.5 percent by 0806 GMT in line with gains in technology stocks across Europe on the back of a U.S. tech sector rally. Earlier this week Philips announced plans to dissolve its loss-making components arm, one of its six divisions, taking a 175-million-euro restructuring charge.

© Reuters