Philips will cut some 6,000 jobs worldwide by 2025, the Dutch electronics company announced Monday morning.
The newly appointed CEO Roy Jakobs announced the "difficult, but necessary further reduction of our workforce" by 2025. The layoff plan comes after losses related to a recall of faulty sleep apnea breathing devices that has plagued the Dutch company for months.
Phillips has been greatly reducing its global workforce. The 6,000 job cuts are in addition to the previously-announced 4,000 that were announced back in October. At the end of December, Philips had 77,000 employees.
Three months earlier, the number was 79,000. In Belgium, Philips employs 300 people. It is not yet known whether and to what extent the redundancy plan will affect the Belgian teams.
- 70,000 Belgians concerned with recall of Philips’ sleep apnea machines
- Business: Philips recalls millions of breathing devices
Philips wants to improve its profitability by reducing the number of management positions. With this intervention, the group wants to ‘simplify’ and ‘improve agility and productivity’, explained CEO Roy Jakobs.
In mid-June, Philips launched a worldwide recall of several models of respiratory ventilation equipment. The recalled caused its stock market value to fall by 70%.