The latest announcement of job cuts comes amid the reporting of a net loss of €1.6bn by Philips during the full year 2022
Philips global headquarters in Amsterdam. (Credit: Koninklijke Philips N.V.)
Philips said that it will cut an additional 6,000 jobs worldwide by 2025 as part of its efforts to achieve a simplified operating model to become more agile and competitive.
Last October, the Dutch health technology company announced 4,000 job cuts, which are under implementation as planned.
In connection with the latest announcement, Philips will cut half of the jobs, that is 3,000, in accordance with the relevant local regulations and processes.
The job cuts announcement comes amid the release of the company’s fourth quarter and full year 2022 results.
Philips was hit by a net loss of €1.6bn during the full year 2022, compared to a net income of €3.3bn in 2021. The loss was mainly because of the previously disclosed non-cash goodwill amounting to €1.5bn and research and development (R&D) impairment charges, said the company.
In Q4 2022, the company reported a net loss of €105m compared to a net income of €151m in the same quarter of 2021.
Royal Philips CEO Roy Jakobs 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.”
Jakobs’ appointment as CEO came at a time when the company was suffering from the recall of several breathing devices.
A global recall of the company’s sleep respirators was issued in June 2021 due to growing worries about the safety of users.
The health technology business agreed to fix and replace the respiratory and sleep aids that the US Food and Drug Administration (FDA) had to recall.