Philips Netherlands Corporation awaits the second wave of contraction. This time, about 8% of the staff will be on the street — 6000 employees of the company. About this Reports Bloomberg.
In this way, the company is trying to reduce this year’s costs. Last year, amid the first wave of cuts, Philips said goodbye to four thousand workers. This reduced costs by approximately 300 million euros and generated more than the expected operating profit at the end of the year. At the end of January, the company announced an increase in reserves by 85 million euros.
Philips is currently running a company to recall sleep therapy devices. After statements from researchers that they contribute to respiratory diseases and cancer, 885 million euros were allocated for this. However, tests conducted by the company showed that the recalled products are not harmful to health. The statement about this led to a rapid increase in the company’s shares.
It should be noted that the leaders of the technology industry are forced to resort to massive cuts due to a large-scale recession and a decrease in advertising revenues. As a reminder, Twitter has already lost nearly two-thirds of its employees.Amazon is cutting more than 18,000 employees. Google’s parent company, Alphabet Corporation, said it would eliminate about 12,000 jobs.