Philips Cutting 4K Jobs Globally After $1.3B Q3 Loss
Philips is cutting 4,000 jobs globally in a cost-cutting effort, it said Monday, reporting a 5% comparable sales decline to about $4.2 billion for Q3 and a $1.3 billion loss. Orders dropped 6% year on year vs. a 47% uptick…
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in the year-ago quarter, it said. Performance in Q3 was affected by “operational and supply challenges, inflationary pressures, the COVID situation in China and the Russia-Ukraine war,” the company said. In addition to job cuts, the company is addressing facets of a Respironics ventilator recall “to strengthen patient safety and quality management,” plus streamlining operations. “These initial actions are needed to start turning the company around in order to realize Philips’ profitable growth potential and create value for all our stakeholders,” said CEO Roy Jakobs. Cost savings are expected to result in annualized savings of about $296 million. The company expects a mid-single-digit sales decline in Q4 on “prolonged operational and supply challenges, a worsening macro-economic environment and continued uncertainty related to COVID-19 measures in China."