P.M. BRIEFING : Dutch Firm Slashes Work Force
The Dutch electronics giant Philips NV said today it will lay off 4,900 people in its computer division as part of a major restructuring aimed at fending off its Japanese competitors.
Philips’ new chairman, Jan Timmer, told shareholders in July that Philips might face a $1-billion loss, which media here blamed largely on disappointing computer sales. Ultimately, up to 10,000 layoffs are expected.
The company said in a statement that the computer division will be cut to about two-thirds its current size of 15,000 people.
Philips is concentrating on the highly competitive personal computer market and pulling out of manufacturing and selling more complex mainframe and microcomputer systems, the announcement said.
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