Philips will cut 1100 jobs in the Netherlands this year. This is part of a reorganization in which 6,000 jobs will disappear worldwide. In the Netherlands, employees in Eindhoven, Best and Amsterdam in particular will lose their jobs. In the capital, the headquarters are located at the Amstel station, but Philips departs from there. From 2025, the medical technology company will be based in Zuidas. More news will follow.
Philips today announced it will cut 6,000 jobs to restore profitability. It took a big hit after the recall of sleep apnea equipment, an issue which saw Philips evaporate 70 percent of its market value.
Half of the jobs will be cut this year, the company said, and the other half will be created by 2025. As a result of the reorganization, some of the people involved in developing new products and functions will be outsourced. At present, almost all R&D is still located in the center of Eindhoven, but further development of new products in particular will take place elsewhere. Also, more specific development needs to be done for existing products.
The new reorganization comes on top of a plan announced last October to cut staff by 5%, or 4,000 jobs, as the company grapples with the fallout from recalling millions of sleep apnea ventilators over fears that the machines used for the foam can become toxic.
Source: BNR
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