Philips Research wireless communications equipment

The company, which is also Europe's third largest chip maker, insisted that the cuts would not have an impact on its centrally funded, long-term investment in research.

About 300 jobs will be lost during the next year at the Dutch company's research subsidiaries in Europe, Asia and the US.

Its main laboratory is in Eindhoven in the Netherlands.

Cost cutting

Philips is working hard to slash costs in the face of a slump in demand for semiconductors and consumer electronics.

Philips Research wearable consumer electronics

Philips had previously announced that 11,000 jobs are due to be cut from its 210,000 strong workforce.

Last month, the company reported worse than expected losses due to the weak market for telecoms and personal computers.

Philips reported a loss of 516m euros (�323m; $467m), on sales down 23% in the third quarter to 7.18bn euros (�4.49bn; $6.50bn).

This compares with profits of 2.1bn euros in the third quarter of last year.

Philips forecast it would run up losses of between 200m and 250m euros in the fourth quarter of 2001.