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Philips to Cut 4,500 Jobs as Profit Sinks to Two-Year Low

Royal Philips Electronics NV, the world’s biggest maker of light bulbs, plans to cut 4,500 jobs to revive earnings after quarterly profit fell to the lowest in almost two years and the company predicted no near-term rebound.

The job cuts are part of a plan to save 800 million euros ($1.1 billion), Amsterdam-based Philips said in a statement today. Earnings before interest, taxes and amortization dropped to 368 million euros ($510 million) in the third quarter, from 647 million euros a year earlier. That beat the 341 million-euro average estimate in a Bloomberg survey of analysts. Revenue fell 1.3 percent to 5.39 billion euros, in line with estimates.