Philips layoffs are here and have reportedly affected close to 6,000 employees. As per a media report, the Dutch health technology company said that Philips layoffs would lead to the scrapping of 6,000 jobs as the company tries to restore its profitability.
According to a Reuters report, following a recall of respiratory devices that knocked off 70 per cent of the company’s market value, Philips has decided to undertake these mass layoffs. However, all these layoffs will not be executed in one go as half of the job cuts will be realised by 2025.
The report on Philips layoffs reads, “The new reorganisation comes on top of a plan announced last October to reduce its workforce by 5%, or 4,000 jobs, as it grapples with the fallout from the recall of millions of ventilators used to treat sleep apnoea over worries that foam used in the machines could become toxic.”
"Philips is not capitalizing on the full potential of strong market positions as it faces a number of significant operational challenges," Reuters quoted the new Chief Executive Officer Roy Jakobs, as saying.
Philips layoffs come at a time when the world economy is going through an economic slowdown and many people have been losing their jobs due to mass layoffs. What started as tech layoffs in 2022, slowly spread to other sectors and many companies laid off employees in thousands, primarily in an effort to cut costs.