Philips is to simplify its organisation and reduce operations to three core divisions, the electronics giant said on Monday.
The company expects the reorganisation to cut costs by €150m to €200m a year and to lead to a doubling of operating profit (ebita) per share by 2010.
Once the reorganisation has been completed and various units have been merged, Philips will have three key divisions: healthcare, lighting and consumer lifestyle.
Chairman Gerard Kleisterlee told reporters that there would be no compulsory redundancies, with surplus jobs disappearing through natural wastage.
In addition, Philips is to return some €3bn to shareholders through dividends and a share buy-back programme.
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