Philips is set to cut 2,200 jobs at its lighting and electronic divisions with the aim of saving €300m by 2014.
The restructuring programme will affect all sectors of the electronic and lighting divisions apart from the research and development department. The company said it will not affect the jobs of those working in healthcare equipment.
"The company has identified additional opportunities, among others in the healthcare and lighting sectors, to further decrease inefficiency and complexity," Philips said.
Although the company saw a 15 per cent increase in revenue, according to their second quarter figures, Philips chief executive Frans Van Houten said he foresaw difficult times ahead. He said: "Basically across the world we see uncertainty, basically we see our business notably slow down in China and in Europe."
"These additional structural saving opportunities of €300m will bring the overall savings programme from €800m to £1.1bn, to be completed by 2014," the company went on to say.
Philips cut back on 4,500 of their staff in October 2011, which brings total job losses in the last year to 6,700.
