In the hopes of significantly cutting costs, electronics company Philips announced that, over the coming two years, it will be scrapping 6.000 jobs around the world, 1.100 of which will be in the Netherlands.

Major losses lead to dramatic reshuffle at Philips 

After publishing its financial report for the third quarter of 2022 back in October, Philips announced a dramatic reshuffle which would see around 400 people in the Netherlands lose their jobs through forced redundancies. 

At the time, after facing months of substantial falls in profits and sales, the company explained that cuts were required in order to significantly reduce costs, but it was unclear whether further redundancies would be announced in 2023. Now, just three months later, Philips CEO Roy Jakobs has confirmed more changes are on the horizon.

Hundreds of workers at Dutch offices could be facing redundancy 

Philips is taking further action after the company’s annual figures for 2022 revealed it had suffered a loss of 1,6 billion euros. Now, on top of the 800 jobs scrapped last autumn, a further 1.100 positions in the Netherlands are set to disappear over the course of the next two years.

Overall, Philips employs around 80.000 people internationally, 11.000 of whom are based in the Netherlands, working in offices in Eindhoven, Drachten, Best, and Amsterdam. This latest spate of cuts means 10.000 people around the world will be losing their jobs.

It isn’t yet clear what the job cuts in the Netherlands will involve, or how many people will be made redundant. However, the biggest changes are expected to hit workers based at offices in the big cities. “I find it difficult and painful for the colleagues who are directly affected by this, but this is necessary," Jakobs told NU. "The jobs are mainly disappearing at the head office in Amsterdam and in the research development centre in Eindhoven."

Thumb: Lea Rae via Shutterstock.com.