Philips will cut another 6,000 jobs
The ailing medical technology manufacturer Philips wants to increase profitability through further massive job cuts. In addition to the approximately 4,000 job cuts announced in October, another 6,000 are to be cut.
Published: 5 minutes ago
Philips continues to massively cut jobs. The medtech group wants to improve profitability in this way. (Archive image)
At the end of September last year, Philips employed just over 79,000 people. With the austerity course, the recently low operating return should be driven back into the double-digit range. as the group announced on Monday. In addition to cost savings, Philips also wants to achieve this through stronger growth again.
Meanwhile, Philips ended a pitch-black 2022 with at least a good fourth quarter. Sales increased by ten percent to 5.4 billion euros. Analysts, on the other hand, had expected a slight drop in sales.
However, high costs for the announced job cuts and corporate restructuring as well as for the recall and replacement of certain ventilators pushed the group back into the red. The bottom line was a minus of 105 million euros in the fourth quarter.
For the year as a whole, revenue grew by four percent to 17.8 billion euros. Here, Philips benefited from the weak euro, which meant that the turnover generated outside the euro zone was higher in mathematical terms. Operating profit fell 36 percent to 1.3 billion euros.
Because of the depreciation in the problematic sleep and ventilation division and the costs for the restructuring of the group, a loss of 1.6 billion euros was incurred after a surplus of 3.3 billion euros in 2021.