Royal Philips To Close Its Components Division By 2003
By Staff -- TWICE, 10/14/2002
AMSTERDAM, THE NETHERLANDS— Royal Philips Electronics, which has instituted a plan to reduce costs and simplify the structure and organization of its electronics activities, has decided to dissolve its components division.
The company said it is accelerating the process to heighten the cooperation between businesses in its electronics cluster and is focusing on higher-growth activities.
As a result of the new structure, certain digital display and wireless connectivity activities, including the Pronto remote controls group, will move to Philips Consumer Electronics. This move will reduce organizational complexity and duplication and maximize synergies both for branded and OEM solutions, said Philips.
The components headquarters in Sunnyvale, Calif., will be closed, and division CEO Matt Medeiros will leave the company Nov. 1, because he is unable to relocate.
The overall plan is expected to be implemented as of Jan. 1, 2003, and will involve restructuring charges and reorganization costs totaling about $171 million, to be taken in Philips' fourth quarter.
