To save expenses, Philips will eliminate 400 positions in the Netherlands
Nearly 80.000 people work at Philips globally, with 11.000 of them workers based in the business' headquarters in Eindhoven, Drachten, and Best. 800 jobs will be lost or replaced in the Netherlands overall, primarily due to the non-renewal of temporary employment contracts, although 400 workers will experience forced layoffs.
Dutch electronic company's third-quarter revenue decreased by 5%
Over the past few years, the firm has had a number of logistical and financial challenges, as well as increasing stress from the coronavirus outbreak and the ongoing war in Ukraine. A significant factor in the restructuring is the company's recent recall of millions of defective sleep apnoea devices, which has cost them millions in legal and logistical expenses.
The third quarter of 2022 witnessed a 5.3 percent, or 1,3 billion euro, decline in Philips' revenue. Although the significant restructuring is anticipated to cost the corporation 300 million euros, it should ultimately result in annual savings of the same amount. It's unclear at this time if further layoffs should be anticipated in the next year.
