Philips headquarters in Best, the Netherlands.

Photo: Piroschka van de Wouw / Reuters

The Dutch multinational Philips, dedicated to the production of electronic devices for household and medical use, announced that it will lay off 6,000 workers worldwide, in addition to the cuts of 4,000 jobs decided last October.

Half of the job cuts will take place this year, the company said, adding that the other half will take place by 2025.

Philips CEO Roy Jakobs says that

"2022 has been a very difficult year" for the company.

The Amsterdam-based company is reeling from a global recall of sleep apnea machines over problems with the devices and economic headwinds including issues related to Covid-19 in China and the conflict in Ukraine.

Revenue between October and December 2022 amounted to €171,000,000, compared to €162,000,000 in the fourth quarter of 2021, but this was not enough to avoid the loss of €1,529,000,000 recorded in 2022.

Until last October,

the company employed 79,000 people worldwide, once the workforce cut has been made, it will be about 69,000 workers.

"The simplified operating model will make Philips more agile and competitive," the company has defended, which hopes to achieve a "significantly reduced" cost structure through a more efficient and focused organization.

The company will prioritize its organic growth based on patient safety and quality, supply chain reliability and a simplified and more agile operating model.

“I am confident that these comprehensive actions will put Philips on a progressive path towards value creation,” said Roy Jakobs, CEO.

With its decision, Philips joins a growing number of manufacturers cutting costs to cope with instability and inflation in the supply chain.

(With information from TeleSur and La Vanguardia)

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