Philips announces new 6,000 job cuts

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The “difficult but necessary reduction in the workforce” will take place by 2025, the company’s CEO, Roy Jakobs, announced in a statement. Philips logo is seen on the facade of the company’s headquarters, in Amsterdam, Holland world, after the 4,000 layoffs announced in October last year. The announcement was prompted by further losses caused by a large recall of manufacturing defective respirators. The “difficult but necessary reduction in the workforce” will take place by 2025, the company’s CEO, Roy Jakobs, announced in a statement. “2022 has been a very difficult year for Philips and our shareholders. We are taking firm steps to improve our effectiveness and urgently increase yield,” said Jakobs. The Amsterdam-based company announced a net loss of 105 million euros ($114 million) in the fourth quarter of 2022 and 1.605 billion euros for the whole of last year, largely due to the recall of respirators. In 2021, Philips announced a worldwide recall of devices to treat people suffering from sleep apnea and is now facing a series of lawsuits in the United States. Philips made the drastic decision because patients were at risk of “possible toxic and carcinogenic effects” if they inhaled or swallowed pieces of the devices’ degraded sound-absorbing foam.

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