Philips to cut around 4,000 jobs worldwide

According to Bloomberg, Philips announced it will cut 4,500 jobs worldwide, including 1,400 in the Netherlands.

Philips is laying off workers after quarterly profit fell to its lowest level in two years and a near-term recovery is hopeless. The layoffs are part of Philips' plan to cut costs by 800 million euros. About 60 percent of the cost-cutting plan will come from layoffs, Philips said.

Philips on Monday reported a net loss of 1.33 billion euros in the third quarter, compared with a profit of 2.98 billion euros last year. Sales rose 4 percent to 4.31 billion euros from 4.16 billion euros in the previous year. Sales were down 5% on a comparable basis. Comparable orders fell 6%, compared with a 47% increase a year earlier.

Philips said its performance in the quarter was impacted by operational and supply challenges, inflationary pressures, the coronavirus outbreak in China and the Russian-Ukrainian war. Looking ahead, Philips sees long-term operational and supply challenges as Philips adjusts productivity and pricing in the face of a deteriorating macroeconomic environment and continued uncertainty related to COVID-19 measures.