The Dutch multinational electronics group Philips is once again cutting jobs worldwide. 6,000 jobs will be cut over the next two years, 1,100 of them in the Netherlands. In 2022, the company had net losses of €1,605 million, due in part to costs associated with the return and replacement of approximately 5.5 million of its Respironics sleep apnea devices in 2021. They could cause health problems because the foam used for noise reduction could be inhaled in the form of particles. The company laid off another 4,000 employees last October.
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With both adjustments, Philips will cut a total of 10,000 jobs and it is the second such announcement by Roy Jakobs, its new CEO. In 2022, he had been in office for just nine days when he applied for his first downsizing. In the same year, the multinational pointed out that the business unit that manufactures freediving devices had lost value and allocated 1,300 million euros to cover the costs of possible court cases by users. “The decision [del actual recorte laboral] It’s difficult but necessary. Given the challenges our operations are facing, we are unable to realize the full value of our business and this is reflected in last year’s results,” Jakobs said in a statement. Sales increased by 3.9% to 17,827 million euros thanks to fewer problems in the supply chain. Net debt reached 7,028 million, up 50.3%.
According to the company, at least 5.5 million of these fans have left the global market, as have 17 million of the included masks. These need to be washed and when used can release foam particles that can be inhaled. These devices were withdrawn from the market in June 2021 due to the health risks involved and feature an airflow system to keep breathing stable for people with apnea who experience breathing pauses during the night due to airway collapse. The mask provides the necessary air and has a polyester-based foam to reduce noise that is prone to deterioration. The particles thus generated can be inhaled by the user, according to the warning published in June 2021 by the Spanish Medicines and Health Products Agency (AEMPS). According to research by the Dutch multinational, “the possibility that apnea device users have suffered harm is very low”. The majority of these sales were made in the United States, and the multinational has reviewed 60,000 devices in that market, 2,500 in Europe and a further 2,000 in Japan.
Founded in 1891 in the city of Eindhoven, Philips specializes in medical technology and plans to disband the marketing department at its Amsterdam headquarters. He will do the same with the research department in Eindhoven. In this way, up to 90% of research and product development projects are carried out in the factories themselves. With around 77,000 employees worldwide, the Netherlands will continue to be “the center of gravity” of the company’s activities, according to Monday’s announcement. Unions were informed of the cut this Sunday, which they described as “huge”. They have called for a five-year job guarantee for workers who have not lost their jobs.
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