Philips: Job Cuts Up By 2,200 As Company Tries To Save 1.1 Billion Euros

2,200 Jobs To Be Axed At European Electronics Maker
(FILES) A file photo taken on April 16, 2007 shows the logo of the Dutch electronics giant Philips at its headquarters in Amsterdam. A company spokesman said on November 22, 2008 that Philips would cut 'about five percent' of its 32,000 strong workforce in the medical division worldwide, affecting 1,600 workers. AFP PHOTO / LEX VAN LIESHOUT - netherlands out - belgium out - (Photo credit should read LEX VAN LIESHOUT/AFP/Getty Images)
(FILES) A file photo taken on April 16, 2007 shows the logo of the Dutch electronics giant Philips at its headquarters in Amsterdam. A company spokesman said on November 22, 2008 that Philips would cut 'about five percent' of its 32,000 strong workforce in the medical division worldwide, affecting 1,600 workers. AFP PHOTO / LEX VAN LIESHOUT - netherlands out - belgium out - (Photo credit should read LEX VAN LIESHOUT/AFP/Getty Images)

AMSTERDAM (Reuters) - Philips Electronics raised its cost-cutting target to 1.1 billion euros and said it would axe a further 2,200 jobs as it battles a tough economic backdrop and pension costs.

The group, which had previously targeted 800 million euros of cost savings, announced the plan on Tuesday ahead of an investor event in London.

Last year it announced 4,500 job cuts.

"The identified additional overhead cost reduction measures will help us mitigate the effects of macro-economic headwinds and changes in pension cost accounting, while making us a more agile innovation company serving our customers effectively across the world," said chief executive Frans van Houten.

(Reporting by Roberta Cowan; Editing by Mark Potter)

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