After Twitter, Meta, Microsoft and Amazon, the Netherlands-based product manufacturer Philips has announced layoffs. On Monday (January 30), the company’s Chief Executive announced the layoff of 6,000 workers. News Reuters.
Last year, the world’s biggest tech giants started laying off their workers. Several organizations including Meta, Amazon, Microsoft, Twitter, Google have laid off thousands of people to cut costs.
Along with the Covid-19 pandemic and lockdown, the long-running Russia-Ukraine war is having a negative impact on the world economy. The company said that this decision was due to the global recession. Tech giants have started laying off workers in the new year as well which is reflected in Phillips.
On Monday, the company’s chief executive, Roy Jacobs, was quoted as saying that the company was running at a loss due to the lack of sales of sleep devices. From that loss, the decision to lay off staff has been taken. In addition, it is also reported that the number of employees of the company will be further reduced by 2025.
Phillips was going through losses due to the Covid-19 pandemic. In 2022, the company faced a loss of one hundred and five million Euros. It is also informed by Philips that this decision to lay off workers has been taken to reduce their losses and improve the quality of work.
According to a Reuters report, workers in the Netherlands and the United States are more likely to be fired. However, the company has not said anything about which country the workers will be retrenched.