“Difficult, but necessary” job cuts. This is how the company Philips, based in Amsterdam, revealed the loss of 6,000 jobs when publishing its annual results. The group announced a loss of 1.6 billion euros in 2022, largely due to the safety problem of respirators.
The new downsizing comes on top of the 4,000 job cuts announced in October by the group, which currently employs nearly 80,000 people worldwide, Philips CEO Roy Jakobs said in a statement.
Investigations and legal remedies in the United States
The company is the subject of investigations and legal action in the United States after being forced to recall in June 2021 breathing devices for people suffering from sleep problems.
Users risked inhaling or swallowing pieces of toxic sound-deadening foam that could cause irritation and headaches. The group then also mentioned a “potential” risk of long-term cancer.
Philips has since recently assured that, according to extensive tests, the devices were “within safe limits” while specifying that its advice to patients and doctors remains unchanged: stop using the ventilator and consider alternative treatments.
About 3,000 of the 6,000 deletions announced on Monday will be implemented in 2023. The rest will be implemented by 2025, added the former electronics giant, turned health care company.