Philips considers 'alternative options' for its TV unit as it cuts 4500 jobs

Philips says it is "considering alternative options" for its TV division as it reports an 85% drop in third quarter profits and announces 4500 job cuts.

The Dutch company says negotiations with Hong Kong-based TPV to sell off most of its TV business are "intense and constructive and taking longer than expected", according to The Guardian.

"For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options," chief executive Frans van Houten (right) said in a statement on Monday.

Back in April, Philips announced it was planning to offload its television production into a joint venture with the Chinese company. Under the terms of the deal, the Dutch company would effectively give up control of TV manufacturing, having a stake in the new joint venture of just 30%.

TPV would then control the operation and licence the Philips brand name to use on the TVs it manufactures. However, at the time Philips was keen to emphasise that it would be "business as usual" at its TV division.

Declining profitability at its TV division has been a problem at Philips for some time.

Philips aims to cut 4,500 jobs as part of an €800m cost-cutting scheme to boost profits and meet its financial targets.

The firm reported a third-quarter net profit of €76m, down from €524m a year ago on sales of €5.394bn, down from €5.46bn.

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Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.