"The development of our quarterly results reflects the unprecedented speed and ferocity with which the economy softened in 2008, " Philips Chief Executive Gerard Kleisterlee said in a statement.

CNN: Tens of thousands lose jobs as recession bites

Gerard Ruizendaal, head of corporate strategy at Philips, says the company has learnt that whenever it creates a new organisation, it creates a new problem.

ECONOMIST: Philips redraws the lines