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SINGAPORE: Retrenchment blues have hit close to 100 employees working for Dutch electronics company, Philips Singapore.
According to the company, the number of those retrenched makes up less than 3 per cent of its total staff strength of 3,200 here.
Affected staff are only from Philips' Consumer Lifestyle Division's Audio-Video and Multimedia business unit. Those affected make up less than five per cent of 1,920 staff in the division.
They were informed of the decision on Wednesday during an internal staff meeting and will start leaving the company by the end of this month.
Philips Singapore told Channel NewsAsia that the move is part of a global restructuring effort to optimise its worldwide business portfolio.
In this case, the affected business unit will be restructured to concentrate on three product categories, down from the previous five.
The move is said to be necessary for the long-term viability of its business and will enable Philips to focus on its core strengths in those three categories.
A spokesperson said the company had informed its staff union of the move before making the final decision. It is currently working with an outplacement agency to help the affected workers.
Efforts will also be made to relocate them wherever possible to other positions within or outside Philips.
In a meeting with investors and financial analysts in Amsterdam last week, CEO and president of Royal Philips Electronics Gerard Kleisterlee said: "These are unusual times and the rapid economic deterioration will have an impact on Philips' short-term financial targets.
"But we are taking actions to protect our margins and we have made progress to create a more balanced portfolio and strong balance sheet so we are in good shape to deliver and weather the storm."
- CNA/so
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