Philips plans reorganisation and job cuts

MEDICAL equipment maker Philips is planning a reorganisation including further job cuts, to be announced at its fourth quarter earnings Jan 30, a Dutch newspaper reported on Friday (Jan 27).

Eindhovens Dagblad, based in the city where the company was founded, said Philips plans 1,000 job cuts in the Netherlands alone, citing “sources around the firm”.

A spokesperson for Philips declined to comment.

The company announced in October plans to reduce its workforce by 5 per cent, or 4,000, after a recall of respiration devices that has knocked 70 per cent off its share price since mid-2021.

New CEO Roy Jakobs is due to lay out his strategic plan for the company along when it reports earnings on Monday.

Analysts are expecting the company to post fourth-quarter net profit of 140 million euros (S$200.1 million), down from 507 million euros in the same period of 2021, Refinitiv data shows. REUTERS

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