The Dutch group Philips announced on Monday (24) that it will cut 4,000 jobs worldwide, at a time of unfavorable macroeconomic conditions and after the withdrawal of defective breathing apparatus from the market.
The company, which has nearly 80,000 employees, posted a net loss of €1.3 billion in the third quarter due to faulty equipment.
Philips has not lived up to expectations in recent years, admitted new CEO Roy Jakobs. “We face multiple challenges,” he said, announcing “disappointing” results for the third quarter of 2022.
Jakobs also announced what he called a “difficult but necessary decision to immediately reduce our workforce by 4,000 positions worldwide.”
The group intends to allocate almost €300 million (R$ 1.5 billion) in the coming quarters to the restructuring work, but calculates that the reorganization could generate savings of the same amount each year.
“Philips’ performance in the (last) quarter was impacted by operational and supply challenges, inflationary pressure, the Covid situation in China and the Russo-Ukrainian war,” the group said in a statement.
The company recorded a 5% drop in sales compared to the same period last year, at €4.3 billion.
Philips also adjusted the operating result (Ebitda, earnings before interest, taxes, depreciation and amortization) to €209 million, which represents 4.8% of turnover, against €512 million (12.3% of sales) in the same period. period in 2021.
The Amsterdam-based company pulled breathing apparatus from the market in June last year after warning that users were at risk of inhaling or swallowing fragments of a toxic silencing foam that could cause irritation and headaches. Philips also mentioned a “potential” long-term risk of cancer.
Last week, Frans van Houten stepped down as CEO of the company, six months ahead of schedule and after 12 years at the helm of the group.
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