As part of its ongoing cost-reduction efforts, Philips Consumer Electronics announced it would move about 130 jobs in its projection television business creation activities unit here "to other global development centers" over the course of the year.
The transition will not affect the operations of the Philips Consumer Electronics, service, IT, logistics, quality and institutional TV groups that also operate in the facility, here.
Philips said the move "is part of the global business renewal process of the Consumer Electronics division," which is simplifying the organization and streamlining processes to reduce duplication between the divisions' business units and regions.
Last November the company announced a similar move that cut approximately 110 employees (or 30 percent of its 375 member staff) at its Atlanta headquarters.
Philips said the strategic decision to relocate would enable Philips Consumer Electronics to remain competitive in the marketplace.
Currently the Knoxville projection television unit supplies product designs and industrialization support for products sold in North America, Asia, Europe and Latin America. Philips said it is still committed to the projection television business and will move the majority of the Knoxville operations to its facility in Brugge, Belgium, which specializes in high-end television design and production.
Combining the activities in Belgium will "maximize synergies and go-to-market strategies," the company said. Philips said it also expects the action to "strengthen Philips' participation in the global projection television business, better align our microdisplay and FlatTV businesses, provide better levels of service to our retail partners and enable Philips Consumer Electronics to remain competitive and more consistent in the marketplace."
Current running development activities focused on product launches for 2004 will continue at the Knoxville facility. During the course of 2004, activities for product launches for 2005 and beyond will be transitioned to the other centers.
Philips will offer severance packages with terms and conditions to those Knoxville employees. Employees also will be offered an opportunity to apply with other Philips Electronics product divisions. A limited number of employees also will be considered for relocation to other development centers within the Consumer Electronics product division.