This was reported by Bloomberg, Ukrinform reports.

This is said to be the second wave of layoffs at the company. In the first wave announced last year, 4,000 employees were laid off. Philips claims this will result in a cost reduction of around 300 million euros in the coming quarters.

The cuts came amid a recall of defective sleep therapy devices that researchers have linked to respiratory illnesses and cancer. In June 2021, Philips started recalling these devices and allocated approximately 885 million euros for it. On January 30, the company announced that it had increased its reserves by 85 million euros.

Tests by Philips have shown that recalled products are unlikely to cause serious harm to patients’ health. This statement caused a sharp rise in the company’s shares.

This year, Philips expects low single digit comparable sales growth and high single digit adjusted operating margin. The company also reported better-than-expected fourth-quarter sales and operating profit.

Philips joins a growing list of companies that are cutting costs to deal with supply chain shocks and inflation.

Photo: Philips