Philips Cuts Down 6,000 Jobs After Sleep Device Recall Losses Deepen: Report
Philips said on Monday that it will cut down 6,000 jobs across the globe after the losses caused by a massive recall of faulty sleep respirators. The company announced a global recall 2021 of its appliances to help people suffering from sleep apnoea.
And due to this recall, Philips revealed net losses of 105 million Euros (USD 114 million) for the fourth quarter of 2022 and 1.6 million Euros for the last year as a whole.
The Chief Executive Office of Philips, Roy Jakobs announced that reduction in the workforce is difficult but necessary, by 2025 which comes just three months after it announced another 4,000 cuts.
He further said in the statement that 2022 has been a difficult year for Philips and all the stakeholders are taking firm steps to improve the execution.
The CEO informed that a total of 3,000 new job cuts would be made in 2023.
