Dutch electronics group Philips on Monday announced that 4,500 jobs will have to be cut “inevitably” to help restore earnings after 3Q11 profits dropped to a two-year low, as demonstrators in London continued a sit-in at the London Stock Exchange.
Net profit for the three months to the end of September decreased to €74m, down from €524 in 2010, while revenues declined 1.3 percent to €5.39bn.
Plummeting profit were due to falling sales, losses at its TV joint venture, weaker demand for consumer products and an increase in raw material prices.
The group is now taking steps to attain its 2013 mid-term financial targets which include a four to six percent sales growth and an EBITA of between 10 and 12 percent.
Philips CEO, Frans van Houten, said: “We are not yet satisfied with our current financial performance given the ongoing economic challenges, especially in Europe, and operational issues and risks. We do not expect to realise a material performance improvement in the near term. We are taking the right steps to achieve our 2013 mid-term financial targets.”
Meanwhile, the anti-capitalist protests are set to continue at the LSE.