Dutch health technology company Philips said on Monday it would let go off 6,000 employees globally in order to restore the company’s profitability on the back of a recall of respiratory devices.
Read More: Adani group stocks Ambuja Cements, ACC surge up 10%. Here’s why
The recall, however, took place last year but still has a rippling effect on the company.
This is the second round of layoffs at Philips after a recall. The company cut over 4,000 jobs in October last year.
In October, the ocmpany had cut 4,000 jobs following falling sales and after a massive recall because of some breathing devices and ventilators’ foam part showed a risk of degrading and becoming toxic, potentially causing cancer
At the time, CEO Frans van Houten said the company was one of the largest makers of sleep apnea machines and ventilators. Between 3 million and 4 million would be targeted in the recall, he said. He stepped down shortly after that.
“We have now had five quarters of declining sales, declining profit, and now… (in the third quarter) we also have become loss-making,” CEO Roy Jakobs had told Reuters in October who took over as the new CEO.
The company had also warned of an upcoming restructing back in October. It is now for the same that the additional jobs have been cut. The medical equipmentmaker had then expected the reorganisation to cost around 300 million euros which comes to about $295.41 million.
