Digital Desk: As the company presented its third-quarter
results, global technology major Philips announced 4,000 job cuts to
"enhance efficiency and increase agility."
According to Philips, operational and supply issues impacted
third-quarter sales.
According to the company's statement on October 12, group sales
were 4.3 billion euros, with a 5% fall in comparable sales.
The approach to increase efficiency and agility, according to
Philips CEO Roy Jakobs, "includes the difficult, but the essential decision to
immediately decrease our staff by about 4,000 roles globally, which we do not
take lightly and will implement with respect towards impacted colleagues."
"These early initiatives are required to begin turning the
company around in order to fulfill Philips' profitable growth potential and
create value for all of our stakeholders," stated Mr. Jakobs.
The performance of Philips in the third quarter was hampered by operational and supply issues, inflationary pressures, the COVID situation in China, and the Russia-Ukraine war.
Operating cash flow was a 180 million euro outflow, mostly due to decreased cash earnings, greater inventories, and higher provision consumption.
Comparable order intake fell 6% after a significant 47% increase in the third quarter of 2021. The book-to-bill ratio was 1.18, and the order book for equipment expanded further in the quarter.
Continue Reading
