Philips to scrap 6,000 jobs in its bid to improve profitability
Amsterdam: Dutch health technology company Philips on Monday said it will scrap 6000 jobs to restore the company's profitability, media reports said.
The company's recent decision to recall respiratory devices knocked off 70 percent of its market value.
Half of the job cuts will be made this year, the company said, adding that the other half will be realized by 2025, reports CNBC.
New Chief Executive Officer Roy Jakobs told CNBC’s “Squawk Box Europe” on Monday it was a “necessary intervention to help us to become competitive and lean in the way we go forward in the market.”
“We have been working very hard to refocus on health technology, and we have now built a very strong portfolio there where we have 70% of number one or two positions,” he also told CNBC.
“But we have not been extracting the value out of those segments because we did not execute well. So the strategy I present today is very much focused on organic growth, focusing on the portfolio that we have and getting the most out of them.”
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