Philips Cuts 6000 Jobs

January 26th, 2009 at 12:00 am
 


philips

Like I said, the recession is now affecting the biggest names in the market.  Technology and electronics industries are no exception.  Across the pond in the UK, Europe’s largest consumer electronics firm is announcing a decline in their revenues and profits.

Sales fell by 9% to 7.62 billion euros in the quarter as a 29% increase in revenue at the medical-equipment division failed to offset a 32% drop at the consumer lifestyle unit, which sells everything from irons to electric shavers.

"What is quite amazing is not so much the depth of slowdown, it’s the lack of visibility there is," says Philips Electronics Chief Financial Officer Pierre-Jean Sivignon.

 Sales fell by 9% to 7.62 billion euros in the quarter as a 29% increase in revenue at the medical-equipment division failed to offset a 32% drop at the consumer lifestyle unit, which sells everything from irons to electric shavers.

Consequently, as all companies preparing for the economic crunch, Philips is announcing that  it will be shedding a whopping six thousand jobs.  "Our fourth-quarter results confirm the expectation we expressed in early December that the short term economic outlook is worsening and that 2009 is likely to be a very challenging year," the company said in a statement.  "The world is tougher out there."