Philips, Europe's largest consumer electronics manufacturer, is to undergo a far-reaching corporate restructuring involving "thousands of people" following disappointing sales figures.
The firm is to slash operating costs after predicting revenue growth of less than 10 per cent, which it blamed on falling demand and poor consumer confidence.
Speaking at the Consumer Electronics Show in Las Vegas, Philips' chief executive officer Gerard Kleisterlee told Bloomberg: "We have to be a little more modest now and, if it's in the mid single-digits for the moment, I'll be happy with that."
Kleisterlee added that the firm aimed to cut costs over the next 12 to 18 months across Philips' accounting, human resources and IT departments.
"This involves thousands of people, but that doesn't mean that thousands of people will lose their jobs," he said.
"It means change. Sometimes that can be a different job in the same place, sometimes the same job in a different place and, of course, a number of fewer jobs."
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