Multinational Dutch electronics company Philips will axe 4,500 jobs across its global operations following a significant slump in net profits in the third-quarter of 2011.

In a financial statement released this week, Philips confirmed that net profits were down substantially compared to the same time last year, from 74m euros ($103m; £65m), compared with 524m euros a year earlier.

The announcement of job loses follows two profit warnings earlier this year, which saw the company’s share price drop by 40%.

"We do not expect to realise a material performance improvement in the near term," said Philips chief executive Frans van Houten.

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Philips employs 116,000 people worldwide with 2,200 jobs located in the UK. Low consumer demand, blamed on the global recession, is said to be the main reason for the cost-cutting exercise, which has seen its TV business struggle while it seeks to find a buyer.

CEO Frans van Houten says the company, which has seen profits increase from the sale of LED-based products, will save $500 million by the cuts. It’s currently unknown which of Philips’ facilities will be hit the hardest, but with Europe highlighted as the most unprofitable region, employees based in Guildford, Surrey; Hamilton, South Lanarkshire, Chichester and West Sussex could be affected.