Philips Electronics raised its cost-cutting target to 1.1 billion euros and said it would axe a further 2,200 jobs as it battles a tough economic backdrop.

At a meeting with investors and financial analysts on Tuesday in London, Philips will update the financial markets on the developments in the Lighting and Consumer Lifestyle sectors.

As part of his company update, Philips Chief Executive Officer Frans van Houten will discussthe progress of the company's Accelerate! transformation program, which the company expects to improve operational performance, enabling Philips to deliver on its 2013 targets. Philips said that additional structural saving opportunities of EUR 300 million would bring the overall savings program from EUR 800 million to EUR 1.1 billion, to be completed by 2014, and would impact approximately 2,200 additional positions globally.

"We continue to focus on improving the performance of our company, and we are making good progress. The identified additional overhead cost reduction measures will help us mitigate the effects of macro-economic headwinds and changes in pension cost accounting, while making us a more agile innovation company serving our customers effectively across the world." said Philips Chief Executive Officer Frans van Houten. "The additional savings will lead to job losses, which is regrettable. At the same time, we continue to invest in innovation and the customer value chain to speed up the introduction of meaningful innovations to our customers in local markets, making Philips more competitive."