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Philips To Cut 1,500 Jobs

April 26, 2000

OTTAWA, Ohio (AP) _ A plant that makes television picture tubes plans to lay off 1,500 workers beginning in 2001 and move most of the work to Mexico.

A final decision will be made by the end of May, Phillips Display Components spokesman Dave Thompson said Wednesday. He said the company has a tentative agreement with a site in north central Mexico.

The cuts would take place over a three-year period starting a year from now, Thompson said.

Philips, the world’s largest maker of picture tubes, is transferring the work to Mexico to cut costs and because of declining sales prices, Thompson said.

The Ottawa plant would remain open to make large picture tubes, but most of its work would be moved to Mexico, Thompson said. He would not say where the plant would be located.

There are about 1,800 workers at the Philips plant in Ottawa, a town of 4,000 people south of Toledo.

About 300 employees would remain at the plant after the work is transferred. The plant’s four main manufacturing lines will be moved one at a time, Thompson said.

The plant makes 4.2 million picture tubes each year for television sets made by Philips and other manufacturers in the United States and abroad.

The decision also allows the company to move near more of its customers, Thompson said. About 90 percent of the comapnies that provide the plant’s customer base have moved or are planning to move to Mexico, he said.

Workers at the plant were notified of the proposed layoffs during shifts at the plant Wednesday.

Earlier this month, Philips delayed an announcement about the job cuts. The company first said it planned to lay off between 120 and 160 workers in June.

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