Delhi: On the one hand, where many tech companies of the world cut jobs, now Philips also announced large-scale layoffs on Monday. The company said that due to the continuous losses in the company, 6,000 jobs will be lost worldwide (Job Layoff). This is the second biggest layoff announcement by the company after the company announced about 4,000 job cuts about three months ago. The company’s CEO Roy Jacobs has said that the company will lay off these employees by 2025. Company CEO Jacobs said in a statement that 2022 will be a very difficult year for Philips and our shareholders, who are taking these steps to drive our improvement and performance.
This step had to be taken due to loss
The Amsterdam-based firm forecast a loss of 105 million euros ($114 million) for the fourth quarter of 2022 and a massive 1.6 billion euro loss for the year-ago period. Philips announced a mass recall of the machines used to treat people with sleep apnea in 2021. Philips CEO Roy Jacobs said in a statement that 4,000 jobs were being cut immediately to reduce production. This decision is difficult but necessary. We do not take this lightly and respect the employees affected.
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The company has gone through a lot of change
Jacobs said these actions need to be taken so that the company can see Philips’ growth potential and deliver returns for our shareholders. Philips, which started as a lighting company over 130 years ago, has gone through a lot of transformation in recent years. The company is now focusing on manufacturing healthcare products. The company sold off assets to focus on making high-end electronic healthcare products. Questions raised about some of the company’s products and subsequent recall announcements led to a further decline in the company’s market share.