On Monday, Dutch electronics and lighting giant Philips announced its intent to cut 4,500 jobs.
Along with being the world’s leading lightbulb and lighting manufacturer, the company also makes consumer electronics that include televisions, headphones, and music players.
The company made their job-cutting announcement in the wake of a sharp declined in profits during the third quarter, or the three months leading to September. The firm has already released two profit warnings in the past seven months.
The profits loss came from lower margins, losses from a decline in demand from the TV division, and a general fall in sales.
Philips reported that its net profit for the third quarter was 74 million euros (£65 million), compared with 524 million euros gained in the same period last year.
Its share price has also fallen dramatically within the last year, down 40% as the company is faces tough competition with lower-cost Asian products.
Philips has 116,000 throughout its global locations, including 2,200 UK employees. The company says that its job cuts are “regrettable but inevitable step” as the company struggles to improve is operating model and step up profit margins.
Its quarterly revenues declined 1.3% to 5.4 billion euros, and the chief executive, Frans van Houten, has said that Philips does not expect to “realise a material performance improvement” in the next few months.
The company has three UK facilities, though it is not yet known if any job cuts will take place in the UK. 1,400 jobs are set to be scrapped in the Netherlands, and the firm has not yet announced where the remaining 3,100 jobs will be cut from.
On top of its jobs announcement, Philips said that the talks with TVP Technology, a Hong Kong-based firm, were taking “longer than expected.” The talks concern a sale of a 70% majority share in its television business.