The company’s decision is due to strong losses registered in 2022. This measure is added to the reduction of its workforce by 4,000 positions, which was announced in October 2022.
Phillipsthe multinational electronic products company, announced this Monday, January 30, that it plans to cut its workforce by another 6,000 jobs by 2025. This is in addition to the 4,000 layoffs announced last October, in a cost reduction process after registering losses of more than 1,500 million euros in the last year. Until October 2022, it employed 79,000 people worldwide.
The executive director of PhillipsRoy Jakobs, assured that “2022 has been a very difficult year” for the company, which forces it to “take firm measures to improve” the performance of the company, among other things, with the “simplification of the way in which work is being done to increase agility and productivity.”
“In addition to its workforce reduction of 4,000 positions, announced in October 2022, which is being implemented as planned, Philips will reduce its workforce by an additional 6,000 positions globally by 2025, of which 3,000 will be implemented in 2023. in accordance with local regulations and processes”, announced the multinational.
The Dutch firm considers that this decision will help the company to be “more agile and competitive”, and that this reorganization will allow “significantly reduced costs”.
As for its balance of the last year, Philips assured that it “sees some improvements” in the fourth quarter, when group sales amounted to 5.4 billion euros, driven by improvements in the supply of components. Revenue between October and December 2022 amounted to €171 million, compared to €162 million in the fourth quarter of 2021.
For the whole of last year, group sales amounted to €17.8bn, with like-for-like sales down 3% due to “supply and operational challenges”, reduced sales in China, the Russian war in Ukraine and the fallout. of the withdrawal from the market of some controversial respirators of the brand to treat sleep apnea.
With information from EFE.
Source: Larepublica
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