On Monday, when Dutch healthcare technology group Philips releases its 2022 results, an expected restructuring with massive job cuts will get a lot of attention. At least 1,000 of his jobs will be lost in the Netherlands alone, according to Eindhovens Dagblad, as Philips lost more than 1.5 billion euros to him last year. More jobs around the world could be affected.
The planned headcount reductions come in addition to a series of layoffs implemented by CEO Roy Jacobs in October 2022. At that time, his 4000 jobs were lost, including his 400 in Holland.
Additionally, the status of recalls for sleep apnea devices is under new scrutiny. Phillips plans to complete its recall earlier this year, but there are still unanswered questions the company may be able to shed more light on. and the U.S. Department of Justice about the conditions that must be met before the sale of sleep apnea devices can resume. The company also faces a number of lawsuits that could lead to claims for damages.
Analysts believe Dutch medical device companies’ sales have fallen from 2021, which also contributed to losses. Beyond sleep apnea device issues, Philips continued to struggle with disruptions in his supply chain and soaring raw material and energy costs. But Phillips supporters believe the supply chain should stabilize later this year. Contributing factors include China’s reopening after years of his Covid-19 restrictions.