Dutch chip maker NXP, a former subsidiary of electronics giant Philips, announced on Friday that it is to scrap 4,500 jobs worldwide, 15% of its total workforce. Some 1,300 jobs will be axed in the Netherlands over the coming two years.

The biggest Dutch trade union federation FNV told the media on Friday that it is ‘shocked’ by the extent of the cuts. ‘We knew the reorganisation would be significant, but 4.500 [jobs cut] is huge,’ FNV spokesman Ron van Baden told ANP news service.
The move is needed because of a weak US dollar and a slump in the chip market, the company said in a statement.
The oldest of the company’s four factories in Nijmegen will be closed with the loss of 700 jobs. Around 250 jobs will go in Eindhoven where NXP has its headquarters and part of its R&D activities are based.
Cuts will also be made in the production department with a major part of the manufacturing activities moving to the company’s factories in Nijmegen and Hamburg.
The reorganisation aims to make savings of €391m a year, said NXP. The cost of the restructuring is estimated at €568m.
The company already warned it would be taking measures to secure its future in August.
The CNV metal workers union said it wants clear agreements for NXP staff. ‘The people who work at NXP deserve a good future, despite the fact that they are part of the worldwide reorganisation announced today,’ the organisation’s executive Arthur Bot is quoted as saying.
In a statement , NXP CEO Frans van Houten said, ‘This restructuring is a tough measure and it is regrettable that we need to let people go. However, the changes will make NXP a strong, profitable and growing company, with a positive cash flow.
‘NXP is transforming into a globally competitive semiconductor company with scale and leadership in its core businesses.
‘Measures include increasing the competitiveness of our manufacturing base and reduction in our workforce, resulting in a leaner, customer focused company, well positioned for growth in our core businesses.’