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Philips To Lose 6,000 Jobs

Philips To Lose 6,000 Jobs

The recession is claiming another victim as electronics company Philips announced yesterday that it’s going to be forced to lose 6,000 jobs around the world and halt the share buyback program it only initiated last year.

Both its lighting and consumer electronics business had been hit by the economic downturn, chief executive Gerard Kleisterlee said in a statement:

"Our fourth-quarter results are a reflection of both the severe impact of the global financial and economic crisis and the decisive actions taken by management. The effects of the steep downturn have led not only to value adjustments of our remaining financial holdings and the impairment of goodwill at Lumileds but also to a sharp reduction in demand, especially in consumer lifestyle and in our businesses in lighting, compounded by de-stocking in the whole supply chain."

In revealing its annual and fourth quarter figures, Philips said its lighting business had dropped 3%, mostly due to a fall in demand for Lumileds, which are used in LED lighting and mobile phones, while it lost 1.5 billion Euros (over $1.9 billion) in net income at year-end.

As a result, the company is halting its share buyback program. According to ZDNet, the job losses will be in all geographic areas and cover all facets of Philips’s business.

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