Dutch electronics giant Philips said today it was in talks with several companies to sell factories that make mature products, such as standard television sets, in a move that could boost its profitability.
Philips shares fell 1.5 per cent to euro 29.03, after earlier rising to euro 29.80, while Amsterdam’s main AEX index lost 0.35 per cent.
A Philips spokesman confirmed a report in today's Financial Timeswhich had interviewed Mr Gerard Kleisterlee, the chief executive of Philips.
The spokesman declined to give further details such as the number of jobs that could be lost or transferred, or the financial value of the operations.
The news follows close on the heels of the transfer of Philips' European video cassette recorder production to Japan's Funai Electric Company.
Philips announced the VCR transfer yesterday. This move involved 1,000 job cuts. Shedding the mature products factories could cost tens of thousands of jobs.
The group said in July it could report its first annual loss in nine years.
