Amsterdam: Philips Electronics raised its cost-cutting target to 1.1 billion Euros and said that 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.

Notably, last year the company 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.


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