Dutch high-tech medical giant Philips will cut another 6,000 jobs worldwide. The main reason is that he is trying to restore profitability and improve the safety of his products after the recall of his respirators. As a result of these events, the market value of the Philips group fell by 70%. Half of the job cuts will happen this year, Reuters news agency reported, adding that the other half will happen by 2025. This was emphasized in the company itself. It is worth noting that as a result of the new reorganization, the total number of job cuts announced by new CEO Roy Jacobs in recent months has reached 10,000, or approximately 13% of Philips’ total workforce.

Including new cuts, the reduction in staff in recent months reaches 10,000 people.

Of course, with these measures, the Dutch giant joins the chorus of tech giants who have announced massive layoffs over the past few months. These include Alphabet subsidiary Google, Microsoft, Amazon and German software maker SAP. The decisions of the above to drastically reduce the number of their employees is an attempt to prepare for a more unfavorable business environment and a possible downturn in the global economy.

Philips’ share price traded 5.5% higher in morning trading yesterday, helped by fourth-quarter 2022 earnings that were much better than analysts had expected. Roy Jacobs took over the reins of the company last October as Philips continued to grapple with the fallout from a recall of millions of ventilators used to treat sleep apnea. These devices have been massively withdrawn from sale because the foam used in them can become toxic. “What we’re presenting today is, I think, a very dynamic plan to secure the future of Philips. The challenges we are facing are serious and we are facing them head on,” Jacobs told reporters. And he concluded that “in order to increase the profitability of investing in security, innovation will be directed to “fewer projects, with better resources and with more market impact.”