A Dutch multinational conglomerate corporation, Philips will cut nearly 6000 jobs in a drive to improve profitability.
The company plans to cut half of the jobs this year. However, the remaining half will be realized by 2025.
Roy Jakobs, CEO of Royal Philips said, “2022 has been a very difficult year for Philips and our stakeholders, and we are taking firm actions to improve our execution and step up performance with urgency.”
“When I took over as CEO in October 2022, I said that our priorities are first to further strengthen our patient safety and quality management and address the Philips Respironics recall; second, to improve our supply chain reliability to convert our order book to sales and improve performance; and third, to simplify how we work to increase agility and productivity”, Roy Jakobs added.
Roy Jakobs further said, “This is a step-by-step improvement journey supported by our leading market positions, extended customer base, meaningful innovations, ecosystem partnerships, strong brand, and talented employees.”
“As we are working through the operational challenges, we progressed on our execution priorities in the fourth quarter. We provided an important and encouraging update on the complete set of test results for the first-generation DreamStation sleep therapy devices and have completed around 90% of the production for the remediation”, Roy Jakobs added.
“We were able to secure more components to convert our order book into sales, although the supply chain situation remains challenging. Our order book remains strong, despite the comparable order intake decline in the quarter. The previously announced workforce reduction by 4,000 roles globally and other actions are being implemented as planned”, Roy Jakobs said.
Earlier in October, Philips said that the company will lay off nearly 4,000 jobs. The job cut represents over five percent 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.