Philips to cut 4,000 jobs ‘immediately’ after bigger-than-expected loss

Royal Philips
NL,
+3.00%
PHIA,
-3.97%
on Monday said it will “immediately” cut 4,000 jobs after reporting a bigger-than-expected loss on Monday. Roy Jakobs, chief executive officer, announced the layoffs in a shareholder note, saying the company faces “multiple challenges and our earnings reflect this.” He said Philips plans to strengthen patient safety and quality management, address “various facets” of the Philips Respironics recall and “urgently” improve supply chain operation. The job cuts will help improve productivity and increase agility, said Jakobs. Philips will also secure a €1 billion credit line. The company reported a net loss of €1.33 billion ($1.31 billion) compared with a year-ago profit of €2.97 billion, versus expectations of a net loss of €838.4 million, based on FactSet.