The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Computer, Electronic And Optical Products 26 - Manufacture of computer, electronic and optical products
6,000 - 10,000 jobs Number of planned job losses
Announcement Date
24 October 2022
Employment effect (start)
24 October 2022
Foreseen end date
31 December 2025
Description
Dutch multinational electronics manufacturer Philips has announced a global restructuring involving 4000 employees. There are two main reasons behind the announced job cuts. Firstly, their apnea and respiratory equipment can cause health problems in patients and high claim costs are expected. Secondly, they are currently facing a worldwide shortage of parts pertinent to production processes. Cost increases due to high inflation and the war in Ukraine are cited as also playing a role. In the Netherlands, job cuts consist of 400 forced dismissals and 400 job cuts through a non-renewal of temporary employment contracts and natural attrition. Conditions for job cuts in America are still being finalised.
During 2022, two restructuring events at Philips have been recorded in the ERM events database. 106 job cuts in July due to offshoring activities (Philips-2022-NL), and 400 job cuts in the Netherlands as part of a global restructuring (Philips-2022a-NL).
Update, 28/02/2023:
Philips Chief Executive Roy Jakobs has announced that the global jobs cuts will impact 10000 employees, amounting to 13% of the company's workforce. Half of the job cuts will be made this year (2023), the other half will be realised by the end of 2025.
A further restrcuturing plan to cut 1100 jobs in the Netherlands has been recorded in the ERM database (Philips-2023-NL).
Eurofound (2022), Philips, Internal restructuring in World, factsheet number 107665, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/107665.
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