Royal Philips Electronics will lay off five percent of its workforce at its Healthcare division as part of an accelerated cost-savings push sparked by the global economic slowdown.

At its third-quarter results last month, Philips said it would take measures to maintain profitability across all three business lines and the restructuring at the healthcare unit represents the first specific steps that have been revealed. Philips aims to improve its healthcare margins and streamline operations, particularly in its imaging system business.

Philips posted in October sharply lower core profit for the third quarter that missed estimates, partly hurt by its healthcare unit which saw an order slowdown due to the credit crisis. More information from Philips is expected during its fourth-quarter results in January.

Read DOTmed News' prior report at:
https://www.dotmed.com/news/story/7314/

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