Dutch health technology company Philips made a tough announcement on Monday, revealing plans to let go of 6,000 employees just months after laying off 4,000 workers globally. The company stated that the job cuts are part of a restructuring plan aimed at restoring its profitability and competitiveness in the market, following a recall of respiratory devices.
The recall of respiratory devices had a significant impact on Philips’ financial performance and resulted in a loss of revenue for the company. In response, Philips is taking measures to streamline its operations and reduce costs, which includes cutting jobs. The job cuts are expected to affect employees in various departments, including operations, administration, and research and development.
The previous layoff in 2020 was also part of the company’s cost-saving measures, as it struggled to adapt to the impact of the COVID-19 pandemic on the global economy. The pandemic has caused widespread disruptions, and many businesses have struggled to maintain financial stability.
The announcement of the latest job cuts has come as a shock to many employees and has raised concerns about the company’s financial stability. The loss of so many jobs will also have a wider impact on the local economy and job market, as displaced workers may struggle to find new employment opportunities.
In conclusion, Philips’ decision to let go of 6,000 employees is a significant move that raises concerns about the company’s financial stability and the impact it will have on its workforce and the wider community. It is important for the company to ensure that it provides support and assistance to its displaced workers and addresses the concerns of its stakeholders.