AMSTERDAM, Netherlands-Royal Philips Electronics NV said it will quit making mobile-phone handsets and cede it to a venture with China Electronics Corp. to make them.
The Financial Times reported that although CEC will take on some of Philips’ 3,100-person staff at its consumer communications unit, about 1,300 jobs will be cut, mainly in France. Philips plans to begin restructuring and although it will still hold a minority stake in the venture with CEC, it is committed to no future investment, chief financial officer Jan Hommen told the Financial Times.
According to a Financial Times report, shares of Philips fell 5.3 percent in Amsterdam following the news.
