Philips axes further 2,200 jobs by 2014

Electronics maker Philips has raised its cost-cutting plans to 1.1 billion euros ($1.4 billion), which in turn means more jobs are destined for the chopping board. 

The ailing firm said it plans to cut a further 2,200 jobs in addition to the 4,500 jobs Philips announced last year, according to Reuters. The move was announced on Tuesday ahead of an investor event taking place in London, UK.

Philips originally planned to support 800 million euros ($1.02 billion) in savings. However, the company says that a tough economic climate has made the further job cuts necessary.

CEO Frans van Houten said:

"The identified additional overhead cost reduction measures will help us mitigate the effects of macro-economic headwinds and changes in pension-cost accounting, while making us a more agile innovation company serving our customers effectively across the world.

The additional savings will lead to job losses, which is regrettable. At the same time, we continue to invest in innovation and the customer value chain."

The "structural savings" are due to be completed by 2014, and will fall in the company's healthcare and lighting divisions. Philips, which is currently Europe's largest consumer electronics producer, will be axing jobs globally. The company is based in the Netherlands and employs over 120,000 people in over 100 countries.