Philips to Revamp Management to Save Money
EINDHOVEN, Netherlands (AP) _ In an expected move, Dutch electronics giant Philips said Tuesday it will revamp its head office to reduce costs and boost efficiency.
All senior management jobs will be affected by the changes, said Philips spokesman Ben Geertz.
Details will be announced later in the year, but Philips said in a statement that job cuts will be ``unavoidable.″
The company’s new president, Cor Boonstra, who took over Oct. 1, slashed the number of top jobs by a third at his last employer, Sara Lee Corp. of the United States.
In the statement, Philips said it wanted to streamline operations. ``The corporate center will have to focus its responsibilities on core strategic, financial and controlling issues,″ it said.
Company executives have sought to pare costs, especially in the consumer electronics sector where Philips faces strong competition.