Skip to content

Philips Soars as Job Cuts, Supply Improvements Bolster Outlook

  • Dutch company sees low single-digit sales growth this year
  • CEO Roy Jakobs is reducing another 6,000 positions globally
Bloomberg business news
WATCH: CEO Roy Jakobs says the job cuts are needed to counter Philips’s rising costs.Source: Bloomberg
Updated on

Royal Philips NV shares jumped the most in more than two years after the maker of medical equipment projected sales growth on improving supply chains and embarked on a major cost-cutting drive.

Philips is slashing another 6,000 jobs, or around 8% of its total workforce, to counter inflation and potential expenses linked to the recalls of some of its consumer products. The personnel reductions, half of which will be implemented this year, come on top of 4,000 job cuts already announced last year.