Deteriorating demand for Philips lighting and consumer electronics products are set to result in the worst quarterly result in two years.

The Company that has already exited the Australian TV market is expected to announce a 42% slump in earnings according to a survey of analysts by Bloomberg.

CEO Van Houten is responding by deepening cost cuts to combat deteriorating demand for lighting and consumer electronics.

Philips may remove management layers, cut office and information technology costs, said FNV Bondgenoten union official Ron van Baden. At least $430 million in savings are needed just to offset higher costs, analysts surveyed by Bloomberg said.