Philips to cut 6,000 jobs by 2025
Dutch medical technology manufacturer Philips will slash 6,000 jobs globally by 2025 in a bid to cut costs and improve competitiveness.
The company announced this on Monday, after swinging to a net loss in the fourth quarter.
Some 3,000 positions would be shed by the end of this year, Philips said.
The latest cuts come on top of a workforce reduction of 4,000 jobs already announced in October.
As at the end of September 2022, Philips had just over 79,000 employees.
Chief Executive Officer Roy Jakobs said in a statement that 2022 was a very difficult year for Philips and stakeholders.
“We are taking firm actions to improve our execution and step up performance with urgency.’’
Philips reported Monday its fourth-quarter net loss was 105 million euros (114 million dollars), compared to a profit of 151 million euros in the same period a year ago.
Loss per share was 0.12 euros, compared to a profit of 0.18 euros a year ago.
Loss from continuing operations attributable to shareholders was 0.13 euros, compared to the previous 0.16 euros.
Adjusted earnings per share from continuing operations was 0.41 euros, compared to 0.57 euros a year ago.
Income from operations, however, grew to 171 million euros from the prior year’s 162 million euros.
Adjusted earnings before interest, taxes and amortisation (EBITA) was 651 million euros, compared to 647 million euros a year earlier.
Philips said its supply chain conditions remain challenging and it has been affected by lower demand for COVID-19-related products.
The company anticipates a slow start to the year considering the slackening of consumer demand but a gradual improvement over the course of the year.