In a statement accompanying the presentation of its third quarter financial results, multinational technology corporation Philips said today that it will eliminate 4,000 employees in order to ‘enhance productivity and boost agility’. Operational and supply issues had an impact on Q3 sales, according to a statement from Philips. In keeping with the update given on October 12, the group’s revenues were 4.3 billion euros, with a 5% fall in comparable sales, the business reported.
Philips CEO Roy Jakobs said in the statement that the process to increase productivity and agility ‘includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles worldwide, which we do not take lightly and will implement with respect towards impacted colleagues’.
Mr. Jakobs stated that in order to fulfil Philips’ potential for profitable development and to generate value for all of our stakeholders, the firm has to take these basic steps to start turning things around. Operating and supply issues, inflationary pressures, the COVID situation in China, and the Russia-Ukraine conflict all had an influence on Philips’ performance during the quarter.
180 million euros were taken out of operating cash flow, mostly because of decreased cash profits, rising inventory, and greater provision consumption. On the heels of a robust 47% gain in Q3 2021, comparable order intake fell by 6%. The order book for equipment increased throughout the quarter, and the book-to-bill ratio was 1.18.