After 4,000 workers were laid off, what did Phillips owner say?

 

Dutch multinational information company Philips has decided to cut 4,000 jobs worldwide.  They said that this step is due to huge losses in the third quarter of the current financial year.  The company's new CEO, Roy Jacobs, announced the decision on Monday.  He termed it as a 'difficult but necessary decision'.

• What's the story?

Jacobs took over from Phillips a week ago.  He claims that the company's productivity will increase due to these 'tough' decisions during his short tenure as CEO.  In a statement issued Monday, Jacobs said, "4,000 employees will be immediately removed from our organization worldwide."  This decision is not taken lightly.''

• What's next?

The more than 100-year-old company suffered a net loss of 4.3 billion euros in the third quarter of this year.  At this time last year, they had a profit of 297 million euros.  Phillips claims that, along with epidemics like Covid, the Russia-Ukraine war has affected the organization.  In addition, Philips also faced challenges in running the organization, including the supply chain.  The combined effect of all this has led to losses.  Phillips claims that more than 5 percent of the company's employees have been laid off to deal with the shock.