Amsterdam –
Medical device manufacturers Philips intends to lay off (Termination of employment) 4,000 employees. This step was taken for efficiency reasons after there was a massive recall of their medical devices.
Following the product recall, Philips it has lost around 70% of its market share. This layoff plan was first announced by CEO Roy Jakobs, who was just named earlier this month.
“My main priority is to implement this plan immediately so that we can quickly restore the trust of patients, customers and users of the products,” Jakobs said in a written statement quoted by Reuters on Monday (10/24/2022).
“This plan includes reducing the number of employees by approximately 4,000 worldwide. This is no small thing,” he said.
This cut of 4,000 employees equates to 5% of Philips’ total workforce worldwide, or 78,000. This plan could save the company 300 million euros or around Rp 4.6 trillion.
Last month, the Dutch company announced that its pre-tax profit fell by 60% in the third quarter of 2022. Turnover Philips in the same period it fell by 6%.
(La la)
