As it presented its third-quarter financial results, the multinational technology corporation Philips said it would eliminate 4,000 positions in order to enhance efficiency and increase agility.
According to a statement from Philips, operational and supply issues had an impact on Q3 sales.
According to the update given on October 12, group sales totaled 4.3 billion euros, with a 5% fall in comparable sales.
In a statement, Philips CEO Roy Jakobs said that in order to increase productivity and agility, the company must make the difficult but essential decision to immediately cut 4,000 jobs from its global workforce. He added that this is a decision that will be carried out with consideration for the affected employees.
Operational and supply issues, inflationary pressures, the COVID situation in China, and the Russia-Ukraine war all had an impact on Philips’ performance during the quarter.
180 million euros were taken out of operating cash flow, mostly because of decreased cash earnings, rising inventory, and higher provision consumption.
On the heels of a robust 47% gain in Q3 2021, comparable order intake fell by 6%. The order book for equipment increased throughout the quarter, and the book-to-bill ratio was 1.18.
News Mania Desk
