EINDHOVEN, NETHERLANDS, JULY 2 -- The Philips electronics multinational, Europe's largest consumer electronics company, today predicted more than $1 billion in losses this year and said it would have to cut its work force by 10,000 jobs.
New president of Philips Industries NV Jan D. Timmer announced the projected losses at a stockholders meeting, and said they would result from a major restructuring effort.
The expected losses for the year exceed even Timmer's own previous pessimistic forecast June 14 that net income for the whole of 1990 would be very low.
Timmer said today that the June 14 forecast had been made in the expectation that there would be normal restructuring costs of $212 million rather than the $1.4 billion that now has been slated.
The Philips president said 1990 sales would total more than $29.7 billion. Although the restructuring will be aimed mostly at Philips money-losing information systems and components division, Timmer indicated that the group didn't intend to abandon these activities.
Timmer said that the company would begin the process of laying people off immediately. Most of the job losses will be in Europe, he said.
Philips currently employs about 293,000 people worldwide.