Philips axing 6,000 jobs in face of $1.9bn Q4 2008 loss

Philips is the latest big-name electronics firm to announce their Q4 financial performance, and anyone hoping for an industry turnaround will still be disappointed.  Overall sales for Q4 2008 were down 9-percent over the same quarter 2007, with Philips' consumer lifestyle division – i.e. those responsible for HDTVs and other mainstream electronics – seeing 24-percent lower sales.  That led to an overall net loss of €1.47bn ($1.9bn) for the quarter compared to Q4 2007. 

Full year comparable sales for 2008 were down 3-percent on 2007's figures, with consumer lifestyle again driving the loss with an 8-percent decrease.  In Q4 2008, TV sales dropped 34-percent compared to the same period the year before. 

As a result, Philips is pushing forward with cost saving measures that will include 6,000 job losses and the halting of the company's share buyback scheme.  That scheme, which was first announced in December 2007, aimed to reacquire €5bn worth of Philips shares; so far it has bought €3.3bn worth.  The 6,000 job cuts are on top of 3,000 jobs already axed in Q4.