1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites
Live TV
Latest audioLatest videos
In focus
Russia's war in UkraineIsrael-Hamas warIndia elections

Philip to split company

September 23, 2014

The Dutch electronics giant Philips will soon split in two in order to cut costs. The company has already let go of some less profitable divisions in order to focus on higher-margin areas.

https://p.dw.com/p/1DHHf
Light bulb
Image: Fotolia/chianim8r

The electrical appliance manufacturer Philips said Tuesday it would divide its 120-year-old company into two entities - a lighting business and a fused consumer and healthcare division.

"I do appreciate the magnitude of the decision we are taking, but the time is right to take the next strategic step for Philips," the company's Chief Executive Frans van Houten said.

Philips said the restructuring would save the company 100 million euros ($128.5 million) next year and another 200 million euros in 2016. The cost of splitting the company is expected to total 50 million euros from 2014 to 2016.

Philips gliedert Fernseher-Sparte aus # 18.04.2011 10 Uhr # Journal English

In order to focus on more profitable endeavors such as energy-saving light bulbs, Philips has in the past jettisoned its consumer electronic businesses.

cjc/hg (Reuters, dpa)