Philips lays off 6,000 employees to cut costs – Northern Times

Dutch electronics giant Philips plans to lay off more than 6,000 workers worldwide to cut costs. This would make him one of the largest employee layoffs in the company’s long history.

It has not yet been announced where the jobs will be lost, but around 1,100 jobs are expected to be lost in the Netherlands. according to To Algemen Dagblad.

Most of these layoffs are reported to occur within the company’s research facilities in the south of the country, such as its R&D campus in Eindhoven and its headquarters in Amsterdam.

“Instead of prioritizing a well-diversified portfolio, Philips will focus on a narrower range of promising products,” said CNV Trade Union Chairman Arjan Huizinga. Said Rewarder Coolant.

Huizinga said the company has no plans to lay off workers at its production facilities, such as those in Vest, which makes medical equipment, or Drachten, which makes popular shavers and electric toothbrushes.

About 2000 people are employed by Philips in Drachten. “The factory is running well, but Philips could cut back on the management layer there,” he says Huizinga.

The news is in line with Philips’ 2022 net loss of €1.6 billion, down from a net profit of €3.3 billion a year earlier.

Sluggish profits forced the company to lay off 4,000 employees last October.

Philips has around 80,000 global employees and has always said that job cuts were inevitable. The Dutch workforce totals about 11,000 people and is mainly based in Eindhoven, Best and Drachten. Half of the job cuts will take place this year, with the other half realized by the end of 2024, the company said.

The technology sector is undergoing major changes as Philips joins many other multinationals in announcing massive job cuts.

Silicon Valley tech giants Google, Microsoft, IBM, Amazon, and Meta have laid off more than 100,000 combined workers in recent months.