These are bad times for technology companies. In recent weeks we have not stopped seeing more and more layoffs of big and not so big —Glovo announced cuts in Spain today. Microsoft, Amazon, Meta, Salesforce, Twitter or Alphabet have been announcing massive layoffs, and now another company in the sector is joining this tragic trend.
Philips. In October 2022, the Dutch multinational had 79,000 employees worldwide. Already then it announced that it would lay off 4,000 employees (approximately 5%), but now it has indicated that it will reduce that workforce by 6,000 additional positions worldwide by 2025. Of those layoffs, half will take place in 2023.
Losses. The reason is none other than the income statement: the company has lost more than 1,500 million euros in the last year. According to those responsible, this “simplified operating model will make Philips more agile and competitive, allowing the company to offer innovations with greater impact for its customers, patients and consumers.” In addition, they highlight, thanks to this reduction in staff they will have “a significantly reduced cost structure”.
all problems. In its financial results for the fourth quarter of 2022, sales rose 3%, while revenue at the annual level had the same (and slight) growth. Those responsible for the company attributed the situation to “operational and supply challenges, the drop in sales in China, and the war in Ukraine.”
Respironics. In the summer of 2021, the company had to recall various respirators and ventilators from the market. The effects of that big problem – harmful effects would later be ruled out – have been transferred to a whole 2022 in which the losses in that part of the business have been enormous, and have contributed to the drop in the value of Philips shares, which in 2022 fell close to 50%.
slow recovery. With this measure, Philips hopes to face the coming months in a somewhat more positive way. The company indicated that the beginning of the year will be “slow”, and things will improve over the next few months.
