Philips to lay off 6,000 more employees by 2025
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Dutch company Philips announced about the intention to cut 6,000 employees by 2025, half of whom will be laid off this year. This is the second announcement of massive layoffs in the last three months. In October, a year has passed announced on the reduction of staff by 4 thousand employees.
The mass layoffs of Philips workers are connected with the scandal over the respiratory drugs of the Dutch company, devices for artificial ventilation of the lungs and sleep devices for temporary respiratory arrest (apnea). As it turned out in 2021, the foam used to make the machines quieter can decompose and enter the respiratory tract, according to some becoming toxic, which can later lead to cancer in patients. As a result, in June 2021 the company announced about the recall of 4 million devices.
The US Department of Justice is investigating the company. In addition, a number of class and individual lawsuits have been filed against Philips. Since then, the company has already set aside €970 million for possible settlement of claims, and the costs associated with the recall of drugs have already reached €1.5 billion.
As a result, the company ended 2022 with a net loss of €1.6 billion against a profit of €3.3 billion a year earlier. At the same time, the manufacturer’s revenue grew by almost 4% at the end of the year, follows from financial report Philips.
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