Daily Times

Philips CEO announces 4000 job cuts

As it released its third quarter financial results today, the multinational technology company Philips said it would remove 4,000 positions in order to “improve productivity and increase agility.”

According to a statement from Philips, operational and supply issues had an impact on Q3 sales.

According to the update given on October 12, group sales totaled 4.3 billion euros, with a 5% decline in comparable sales.

Philips CEO Roy Jakobs in the statement said the process to improve productivity and agility “includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do not take lightly and will implement with respect towards impacted colleagues.”

“These initial actions are needed to start turning the company around in order to realize Philips’ profitable growth potential and create value for all our stakeholders,” Mr. Jakobs said.

Philips’ performance in the quarter was impacted by operational and supply challenges, inflationary pressures, the COVID situation in China, and the Russia-Ukraine war.

Operating cash flow was an outflow of 180 million euros, mainly due to lower cash earnings, increased inventories, and higher consumption of provisions.

Philips CEO announces 4000 job cuts

Comparable order intake declined 6 percent on the back of strong 47 percent growth in Q3 2021. The book-to-bill ratio was 1.18, and the equipment order book grew further in the quarter.

hilips’ performance in the quarter was impacted by operational and supply challenges, inflationary pressures, the COVID situation in China, and the Russia-Ukraine war.