Three thousand jobs will be cut worldwide this year, and another three thousand will disappear over the next two years. Out of the 1100 job cuts in the Netherlands, seven hundred will be from Eindhoven and Best.
The layoffs are part of a reorganization that CEO Roy Jakobs is deploying. As a result, the medical technology company is aiming to ‘perform better’. The problems at Philips are largely due to a major recall of millions of apnea devices. The reason for recalling the device is due to loose foam particles, expected to be harmful to health.
For the dismissed employees, there is a ‘good social plan’, writes Philips. “In addition, there will be strong efforts to guide people from work to work and, where possible, to retain talent for the region in collaboration with technological companies in the region”.
As far as Jakobs is concerned, Philips must become ‘simpler and more flexible’. He also wants to take steps to increase productivity. In doing so, he wants to focus mainly on products ‘that will be in high demand in the future’.
Trade union CNV is rather shocked about these job cuts and reorganisation. CNV director, Arjan Huizinga points out that the company always made drastic changes shortly after its top executives were appointed. Huizinga continues. “But it is precisely the people who do everything they can to make Philips a fantastic company. It would be much more desirable to stop paying dividends to shareholders for one or two years”.
The CNV director believes that Philips should offer the retained employees an employment guarantee. The company deals with a decent voluntary departure scheme and place-making in its ongoing social plan.
Pride of Eindhoven
In many ways, the company has been the pride of the city. Philips once started with light bulbs, following which it stepped into consumer electronics and medical devices. With this round of layoffs, the research branch at Best is among the hardest hit. As the largest in the medical sector, this round of redundancy shall have a significant impact.
Source: OmroepBrabant & Studio 040
Translated by: Seetha
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