Philips is again making big cuts to the organization. Over the next two years, another 6,000 jobs will be lost worldwide, of which 1,100 are in the Netherlands. The medical technology company announced this when it released its annual figures.
The company lost 1.6 billion euros last year. The new layoffs came on top of that in October of last year. At that time, 4,000 workers were laid off worldwide, including 800 in the Netherlands. This means that 1100 jobs will be added in the Netherlands.
With this new announcement, the company is now laying off 10,000 jobs. The company currently employs around 80,000 people, of which 11,000 are in the Netherlands.
To remember
According to the company, this restructuring is necessary to reduce costs. New CEO Roy Jakobs had been on the job for just nine days when the layoffs were announced in October.
Philips is facing major challenges, particularly with regard to massive recalls of apnea devices. Millions of devices worldwide have to be recalled and replaced due to the potentially harmful detachable foam particles. This costs the company a lot of money.
Earlier this year, Philips has already written off 1.3 billion euros for this work due to a possible settlement with the American authorities regarding these issues.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
