© Reuters. FILE PHOTO: Logo of Dutch technology company Philips is seen at its company headquarters in Amsterdam, Netherlands, January 29, 2019. REUTERS/Eva Plevier
AMSTERDAM (Reuters) -Dutch medical equipment maker Philips said on Monday it expected to scrap around 4,000 jobs as it tried to streamline its organisation after a massive recall slashed around 70% off its market value in the past year.
The move was the first announcement by newly appointed CEO Roy Jakobs, who took over the reins earlier this month as the company continued to grapple with the fallout of its costly recall of respiratory machines and with ongoing supply chain problems that led to a profit warning last month.
“My immediate priority is to improve execution so that we can start rebuilding the trust of patients, consumers and customers,” Jakobs said in a statement.
“This includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do not take lightly.”
The cuts represents just over 5% of the company’s workforce based on last year’s total of 78,000.
The company said it expected the reorganisation to cost around 300 million euros ($295.41 million) in the coming quarters.
($1 = 1.0155 euros)
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