Thomson has decided to exit its retail telephony activities in North America. Thomson supplies GE-branded phones in the U.S., The plan calls for the elimination of its telephone-related division at its Carmel, Ind., facility and laying off of more than 70 employees by summer of 2009 and another 70 workers worldwide. Thomson will still have 450 employees based in Carmel after the layoffs, primarily in the set-top box business.

The company said the decision reflects CEO Frederic Rose’s commitment to exit businesses that are unlikely to contribute to improving Thomson’s profitability in the short to medium term. The business, which is part of Thomson Grass Valley (formerly Systems), sells principally digital enhanced cordless home telephones (DECT) telephones to retailers in North America. It accounts for some €135 million (at actual exchange rates) of revenues YTD 2008, a decline of 18 percent year-on-year, and is expected to report an operating loss of over €(20) million in the current year.

The charges associated with exiting the North American business are estimated to be in the region of €60 million of restructuring costs. The net cash impact of the decision to exit this activity is estimated at €(30) million over 2008/2009. The number of positions affected by the exit will be approximately 140 worldwide.

The Group’s related European and remaining Asian activities are the subject of continuing review.Thomson will continue to pursue its business focusing on set-top boxes and multiple play gateways (including embedded telephony).