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Philips cuts more costs and jobs

Philips cuts more costs and jobs
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Philips is stepped up its cost-cutting efforts – with additional layoffs of workers.

The maker of consumer electronics, medical equipment, and lighting systems said it will cut another 2,200 jobs on top of the 4,500 announced last October.

The Dutch company would not say how many would be from the Netherlands, which holds a national election this week where austerity and job losses are among the main campaign issues.

Raising his cost cutting target from 800 million to 1.1 billion euros, chief executive Frans van Houten said the focus is removing duplication and reducing complexity in areas such as IT with the savings to be reinvested in innovation, research and sales.

The aim is to get new products into local markets faster.

Philips is starting to see results from the drastic overhaul of its business which comes after a 1.3 billion euro loss last year.

Europe’s largest consumer electronics producer, the world’s biggest lighting maker and a top-three maker of hospital equipment reported bumper second-quarter earnings in July, giving investors hope that the overhaul was starting to pay off.