Philips to cut 6K jobs worldwide; Paypal to trim 2K full-time workers
DUTCH consumer electronics and medical equipment maker Philips said Monday, Jan. 30, 2023, it is cutting 6,000 jobs worldwide over the next two years as it revealed a net loss of 1.6 billion euros (US$1.7 billion) in 2022, down from a net profit of 3.3 billion euros last year.
The job losses come on top of a reduction of 4,000 staff the company announced in October.
The company, which has its headquarters in Amsterdam, is reeling from a worldwide recall of sleep apnea machines and economic headwinds including Covid-related issues in China and the war in Ukraine.
Chief executive officer Roy Jakobs said 2022 was “a very difficult year for Philips and our stakeholders, and we are taking firm actions to improve our execution and step up performance with urgency.”
He said the job cuts will significantly reduce costs and make Philips a “leaner and more focused organization.”
PayPal
Meanwhile, in a separate announcement, PayPal said Tuesday, Jan. 31, it will trim about seven percent of its total workforce, or about 2,000 full-time workers, as the digital payments company contends with what it calls “the challenging macro-economic environment.”
PayPal said it will make the cuts over several weeks, with some of its organizations affected more than others. The company did not further specify. PayPal is the parent of Venmo, Xoom and Honey, among other brands.
The company based in San Jose, California, is the latest in the technology sector to trim its headcount. During the month of January alone, Google, Microsoft and Salesforce announced tens of thousands of layoffs.
“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs,” PayPal president and chief executive officer Dan Schulman said Tuesday in a statement. “While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do.”
PayPal Holdings Inc. is scheduled to report quarterly results Feb. 9. (AP)