Philips TV Business Deal iffy, Mulls 4500 Job Cuts

One of the top three hospital equipment maker and Europe’s biggest consumer electronics producer Philips Electronics said that they are considering all the options in the event that the sale of its TV business fails to take place after the company’s third quarter profits spiraled downwards.

Philips is currently negotiating to sell off most parts of its TV business to Hong-Kong based TPV. The negotiation is considered to be intense, constructive and taking longer time than what was expected. Before the end of this year the deal is expected to be closed.

On Monday the Chief executive Frans van Houten gave a statement that, “For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options,” Livemint reported.

To meet its financial targets and also to boost its profits, Philips is said to be planning to cut 4.500 jobs as part of an €800 million cost-cutting scheme.

In the last seven months, Philips issued two profit warnings, cut down its long term growth targets and also been a target of combination of rising raw material costs, sagging consumer confidence, slugging construction markets and government budget cuts in the sector of healthcare.