Royal Philips
NL,
PHIA,
on Monday said it would “immediately” cut 4,000 jobs after reporting a larger-than-expected loss on Monday. Roy Jakobs, chief executive officer, announced the layoffs in a shareholder announcement, saying the company faces “multiple challenges and our earnings reflect this.” He said Philips plans to strengthen quality management and patient safety, address “various aspects” of the Philips Respironics recall and “urgently” improve supply chain operations. The job cuts will help improve productivity and increase agility, says Jakobs. Philips will also guarantee a credit line of 1 billion euros. Company reported a net loss of 1.33 billion euros ($1.31 billion) compared with a profit of 2.97 billion euros a year ago, compared with expectations of a net loss of 838.4 million euros, based on FactSet.
