Philips Electronics NV is cutting 600 of the 1,800 jobs in its personal computer operations in a sweeping reorganisation that will reduce overhead costs at its plants in Montreal, Canada and Tilburg, Netherlands. It will no longer sell personal computers through traditional outlets in the US, but will make computers to the specifications of US OEM customers that would resell them. Philips’ direct personal computer sales and marketing will be focused in Europe, the Far East and Canada. The Dutch world headquarters of the personal information products business will move to Tilburg from Best, but Tilburg’s assembly role will be scaled back and it will simply package machines made in Montreal – and add a software development function. Nevertheless the Montreal factory will bear the brunt of the job losses.
