Philips will cut about 5% of its workforce after the company recorded a net loss in the third quarter tied to recalls of its faulty sleep respirators and as continuing supply chain woes curbed sales.
Philips, which employed 78,189 people at the end of last year, called the layoffs “immediate” but said it will need to consult with workers councils and social partners.
Most of the layoffs will occur in the U.S., the Netherlands, India and China, the company said in a statement on Monday. Philips plans to cut its Netherlands work force by 800 people, laying off 400 employees and eliminating 400 more positions through attrition and reduced use of temporary workers. No businesses will be divested, but Philips said it may shut some units that generate sales under €20 million ($19.7 million).
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