Philips to cut 6,000 jobs

Philips has suffered from falling consumer demand

Consumer electronics supplier Philips is to cut 6,000 jobs after releasing fourth-quarter results that showed a loss of €1.5bn (£1.4bn).

"Our fourth-quarter results are a reflection of the severe impact of the global financial and economic crisis, and the decisive actions taken by management," said Philips chief executive Gerard Kleisterlee on Monday.

Kleisterlee explained that falling consumer demand had particularly affected Philips' Consumer Lifestyle division and OEM lighting businesses.

The company announced restructuring and change programmes, but said that spending on R&D and marketing would not be affected. "Innovation is now more crucial than ever," said Kleisterlee.

The layoffs will occur across Philips' global operations at some point this year. The firm could not comment on how UK staff will be affected, but promised to share more information in the coming months.