Big shake-up by N.V. Philips is likely today; president expected to quit in latest drive to turn electronics firm around

Article Abstract:

Cornelis van der Klugt is expected to resign from N.V. Philips in a major management shakeup for the Dutch electronics giant. Klugt is expected to be replaced by Jan Timmer, who had already been designated as president upon Klugt's retirement in Jul 1991. The announcement comes shortly after sagging stock prices and an unexpected decline in 1st qtr profits. First quarter results fell to six million gilders, from 223 million for the year-earlier period. The disappointing results hit shortly after van der Klugt made an optimistic forecast for 1990. Timmer comes to the position as a Philips veteran who most recently helped turn the consumer electronics division into one of the best performers in the company in terms of operating income. Timmer's division rose 34 percent to $598 million. Even the rumor of an announcement that Timmer would take over has stemmed the stock plunge.

Planning, Employee resignations, Resignation

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N.V. Philips to eliminate 10,000 jobs; new chief puts '90 deficit at $1.07 billion, vows to hold computer unit

Article Abstract:

N.V. Philips expects a loss of about 2 billion guilders ($1.07 billion) for 1990, according to Jan Timmer, the company's chief. Timmer, speaking at a stockholders meeting, says he will eliminate 10,000 jobs, but he provides few details about other restructuring plans, saying that his plans are still being formulated. Philips's shares drop 87.5 cents accordingly, closing at $16.875 on the New York Stock Exchange. Timmer says that job cuts will primarily be in Europe. Philips's workforce worldwide is now 290,000, having shrunk by 90,000 over the past ten years as the company went through various restructurings. The most recent personnel cuts are larger than expected, but analysts are not impressed. According to one observer, Philips needs to get rid of 40,000 to 50,000 employees to attain efficiency comparable with the company's strongest rivals.

Electronic computers, Computer industry, Profits, Layoffs, Layoff, Profit

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N.V. Philips shares gain from shake-up

Article Abstract:

Investors reacted favorably to the resignation of Philips N.V.'s chairman, Cornelis J. van der Klugt, and to the appointment of Jan D. Timmer. The management shake-up follows the unexpected decline in the Dutch electronic company's 1st qtr 1990 profits. The shift will become effective on Jul 1, 1990. Klugt had predicted that 1990 would be a better year than 1989, but 1st qtr results reveal a profit of only six million guilders compared with 233 guilders in the same period in 1989. Philips's shares closed at 33.40 gilders on May 14, 1990, on the Amsterdam Stock Exchange, up two gilders, but still below the 37.70 gilders it was selling at prior to the 1st qtr 1990 profit report.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Netherlands, Retirement, Strategic Planning

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