Philips announces 6,000 job cuts worldwide

Philips announces 6,000 job cuts worldwide

Another week, more news about mass layoffs at a major tech company. This time it is the Dutch Philips, manufacturer of health equipment, which announced this Monday (30) the cut of 6 thousand jobs worldwide. It is worth noting that the company had already laid off 4,000 employees last year, totaling 10,000 cuts in personnel in less than six months.

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Philips still suffers from the global recall it had to carry out in 2021, due to problems in devices for the treatment of people with sleep apnea. Patients were at risk of “possible toxic and carcinogenic effects” if they inhaled or swallowed pieces of the sound-absorbing foam that came off the devices. In addition to spending on products and collecting and exchanging them, the company has been facing a series of lawsuits in the United States.

Headquartered in Amsterdam, Philips accumulated net losses of around 105 million euros (R$ almost R$ 580 million) in the fourth quarter of 2022, with a negative total of 1.605 billion (R$ 8.84 billion) in the entire last year — thanks in large part to the recall.

“2022 has been a very difficult year for Philips and our shareholders. We are taking firm steps to improve our effectiveness and urgently increase revenue,” said Philips CEO Roy Jakobs. And the expectation is that more cuts will be announced in the coming months, since the “difficult, but necessary reduction in the workforce” should happen by 2025, according to the executive.