Philips can stop making TVs

One of the more traditional TV manufacturers in the world can pull this segment soon. Royal Philips Electronics announced that to reduce their IT spending, intended to lay off about 4,500 employees worldwide, and also consider selling your business development and production of television sets.

The reason for such drastic measures was the result in the company's fiscal fourth quarter. The company announced a drop in revenue of EUR $ 448 million in the third quarter this year compared with the same period in 2010. With layoffs and budget cuts, the Dutch company expects to save about $ 800 million USD.
Such measures also aims to reduce the complexity of producing products, and eliminate excess employees in the process of producing their products.

The Philips is a world leader in lighting, the European leader in the production of electronic devices and the third largest manufacturer of hospital equipment in the world. However, with the financial results announced on 18 October, the company reported a profit of only 76 million between July and September this year.

The division of Philips televisions may have sold part of its segment to TPV, Hong Kong company. Rumors report that the negotiations between the two companies are advanced, but taking longer than expected. The deal should be completed by the end of 2011, and if the agreement with Philips to TPV may not materialize consider other options.

Related Article