Philips, the global technology company, has recently announced its plans to reduce its global workforce by 6,000 roles by 2025, with some 3,000 individuals receiving the pink slip before year's end. Specifically, the company cited 1,100 employees in the Netherlands will be impacted.
The move arrives in conjunction with the company's new growth strategy, announced yesterday, which amongst a number of actions and transformations, cites the Philips Innovation Center in Eindhoven as being a designated centre for breakthrough innovations.
Pointing to a transformation in recent years of its portfolio to become a leading healthtech company, the new strategy will see the company double down on its image guided therapy, monitoring, ultrasound, and personal health business segments, scale its enterprise informatics business segment, improve its imaging business, and a restoration of the sleep and respiratory care business segment.
According to Philips, in order to champion these segments it's shifting 90 percent of its R&D resources to these businesses, a figure up 20 percent from that of 2022.
A new simplified operating model will also be employed, one that, "will make Philips more agile and competitive, enabling the company to deliver more impactful innovations for customers, patients, and consumers, guided by a clear, but reduced number of KPIs. Equally important, Philips’ leaner and more focused organisation will have a significantly reduced cost structure."
"Our strategy will focus on organic growth through patient and people-centric innovation at scale, with a strong improvement in execution as key value driver. This will be enabled by strengthening our patient safety and quality management and completing the respironics recall," commented Philips CEO Roy Jakobs. "We will also urgently enhance the supply chain reliability to improve performance and simplify our way of working to improve our agility and productivity. This includes the difficult, but necessary further reduction of our workforce by around 6,000 roles globally by 2025."
Lead image: Rubaitul Azad