• Philips will lay off 4,000 workers 'immediately' following a larger-than-expected loss.

    Business
    Philips will lay off 4,000 workers 'immediately' following a larger-than-expected loss.




    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.