Philips is laying off six thousand employees, of which 1,100 in the Netherlands. This is reported by the Eindhoven care tech company Monday morning. Three thousand jobs will disappear this year, the other half until 2025. In October, newly appointed director Roy Jakobs already cut four thousand jobs, of which eight hundred in the Netherlands.
The company, which for decades was considered a leading Dutch success story, is in dire straits after a series of setbacks, and suffered a loss of 1.5 billion euros last year. The main headache file for Jakobs and his predecessor is a batch of sleep apnea devices, which help patients with respiratory problems breathe at night. When using the Philips devices, insulating foam could detach and enter the airways of the patient. As a result, Philips has to replace 5.5 million appliances, with all the associated costs.
Reputational damage
That task has already caused former CEO Frans van Houten to resign. The company lost tens of percent in market value and hundreds of patient lawsuits are threatening in the United States, which could cost the company billions. All this has resulted in considerable reputational damage for Philips.
There is one bright spot; according to research by Philips, which has yet to be checked by the American Food and Consumer Product Safety Authority, the health damage suffered by users of sleep apnea devices is not that bad. That was in December of last year. According to director Jakobs, these preliminary results are “very encouraging”, although it did not prevent him from cutting his workforce.
Read also Roy Jakobs: from a limited youth to the top of Philips
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