• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

News » Philips to axe 6,000 workers amid profitability issues 

Philips to axe 6,000 workers amid profitability issues 

Philips to axe 6,000 workers amid profitability issues 

AMSTERDAM, NETHERLANDS — Health technology company Philips intends to close 6,000 jobs to restore profitability following a massive recall of respiratory devices created by the firm. 

In a press release, Philips explained that half of the job cuts will be made this year, while the other half will be concluded by 2025. 

The new reorganization comes on top of a plan announced last October to reduce its workforce by five per cent, or 40,000 jobs. 

The firm is currently grappling with the fallout from the recall of millions of ventilators used to treat sleep apnea over worries that foam used in the machines could become toxic. The recall knocked 70% of Philip’s market value. 

“Philips is not capitalizing on the full potential of strong market positions as it faces a number of significant operational challenges,” explained Philips CEO Roy Jakobs. 

The reduced workforce is expected to lead to a low-teens profit margin by 2025, and a mid-to-high-teens margin beyond that year, with mid-single-digit comparable sales growth throughout. 

The simplified organization should also boost patient safety, quality, and supply chain reliability. 

“The company will continue to invest 9% of sales in research and development but will focus on “fewer, better resourced, and more impactful projects,” Jakobs added.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image