Philips announces 4,000 layoffs worldwide

According to news on October 24, Dutch medical equipment manufacturer Philips today announced an organizational reorganization plan and is expected to lay off 4,000 employees in order to reduce operating expenses and improve company performance.

Philips said that in order to improve performance and reduce operating costs, it will launch a plan to promote overall productivity, including simplifying the organizational structure to streamline work processes. After consultation with labor unions and relevant partners, it was decided to immediately lay off approximately 4,000 employees worldwide. The layoff-related costs (including severance pay) in the next few quarters are expected to be approximately 300 million euros; and after the organizational restructuring is initiated, it is expected that this will Savings of approximately €300 million.

Philips also announced its third results for 2022. Under the influence of inflationary pressure, the new crown epidemic and the Russia-Ukraine conflict, Philips' third-quarter sales were 4.3 billion euros, a decrease of 5% compared with the same period last year; the net loss was 1.329 billion euros, while net profit was 2.98 billion euros in the same period last year.

Philips further pointed out that it is currently implementing a number of urgent actions to improve the performance and productivity of the supply chain, such as dual sourcing, supplier integration, etc., and will continue to strengthen R&D energy and product quality; it will continue to adjust its organizational structure in the future , to further improve supply operations, enhance investment quality, simplify work methods, etc., which will incur additional restructuring costs in 2023.