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Philips to cut 4,000 jobs in the coming days, and here is the reason

Philips appointed Roy Jakobs as the new CEO, a week back and recently it was reported that the company is set to lay off around 4000 people working in the R&D, warehouses, consolidating suppliers and more. The decision has been taken, post witnessing the drop in Q3 this year.

Saumya Nigam Edited By: Saumya Nigam @snigam04 Noida Published on: October 25, 2022 11:59 IST
Job cut
Image Source : PIXABAY Job Cut by Philips

Philips, a tech company known for significant consumer goods has announced to slash down 4,000 jobs because of the"multiple challenges" faced by the company. The challenges were reflected in its Q3 earnings report, which lead to the decision to lay off. ALSO READ: These older iPhone variants will not support WhatsApp after Oct 24: Know-why?

Roy Jakobs, the new CEO of Philips stated that the move has been taken to improve productivity and agility, and further "includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do not take lightly and will implement with respect towards impacted colleagues." ALSO READ: Reliance launches JioBook at Rs 13,299: Specs, availability and more

India Tv - Philips

Image Source : PHILIPSPhilips

The job cuts will represent around 5 per cent of the company's workforce which will be removed.

Roy further said, "These initial actions are needed to start turning the company around in order to realise Philips' profitable growth potential and create value for all our stakeholders.”

The company has reported a net loss of 1.33 billion euros (which is 1.31 billion USD), compared to a year-ago profit which was 2.97 billion euros (almost double).

Last week, Roy Jakobs took the position of CEO, and he is working on cutting the R&D, and warehouses, consolidating suppliers, and adding dual sourcing of components.

Roy said, "We face multiple challenges and our Q3 2022 performance reflects this. Although Philips' strategy and solutions resonate with our stakeholders, we have not lived up to their expectations in recent years," said Jakobs.

"My immediate priority is therefore to improve execution so that we can start rebuilding the trust of patients, consumers and customers, as well as shareholders and our other stakeholders," he said in a statement.

As per Jakobs, Philips will continue to review the areas to improve its supply operations further and simplify the way of working and remove organisational complexity.

He further added, "We will elaborate further on our plans for Philips at our fourth quarter and annual results publication in January 2023," he added.

Inputs from IANS



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