These are bad times for technology companies. In recent weeks we haven’t stopped seeing more and less major layoffs – Glovo announced the cuts in Spain today. Microsoft, Amazon, Meta, Salesforce, Twitter or Alphabet are announcing massive layoffs, and now another company in the sector is joining the sad trend.
PHILIPS, In October 2022, the Dutch multinational company had 79,000 employees worldwide. Earlier it announced that it would lay off 4,000 employees (about 5%), but now it has indicated that it will reduce an additional 6,000 positions worldwide by 2025. Half of those layoffs will happen in 2023.
Loss, The reason for this is none other than the income statement: the company has lost more than 1,500 million euros in the last year. According to those responsible, this “simplified operating model will make Philips more agile and competitive, allowing the company to offer innovations with greater impact to its customers, patients and consumers.” Furthermore, they highlight, thanks to this reduction in staff, they will have a “significantly lower cost structure”.
all problems, In its financial results for the fourth quarter of 2022, sales were up 3%, while revenue increased by a similar (and modest) year-over-year. People responsible for the company attributed the situation to “operational and supply challenges, declining sales in China and the war in Ukraine”.
respironics, In the summer of 2021, the company had to recall several types of respirators and ventilators from the market. The effects of that larger problem — the harmful effects will be ruled out later — have shifted throughout 2022 with that part of the business suffering huge losses, and have contributed to a decline in the value of Philips shares, which Fall to close to 50% in 2022.
slow recovery, With this measure, Philips hopes to face the coming months in a more positive way. The company indicated that the year will start “slow” and things will improve in the next few months.