A Dutch multinational conglomerate corporation, Philips has said that the company will lay off nearly 4,000 jobs.
The job cut represents over five per cent of the company’s workforce. The reason behind the layoff is that the company is hit by a massive financial for faulty sleep respirators pushed it into a loss.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.
New chief executive Roy Jakobs said his “immediate priority is… to improve execution so that we can start rebuilding the trust of patients, consumers, and customers, as well as shareholders and our other stakeholders.”
“This includes the difficult but necessary decision to immediately reduce our workforce by around 4,000 roles globally,” Roy Jakobs said.
It is expected that Philips will make another 300 million euros in charges in the coming quarters. The investment will proceed for the restructuring purpose. The company expects that the measures it will take will be leading to savings of a similar amount.
Recently, the CEO stepped down earlier this year. The company currently employs nearly 80,000 people in 100 countries.
There are many leading IT companies that either laid off employees or froze new hiring including Snap, Twitter, TikTok, Meta, HCL Technologies, and Google. On the other hand, ed-tech companies such as Byju’s, Vedantu, and many more have laid off many employees.
