Philips announced another 6000 job cuts by 2025, and profit before interest, tax and amortisation fell 35.8% last year compared with the same period last year.

CTOnews.com, January 30 (Xinhua) Dutch health technology company Philips said on Monday that it would cut 6000 jobs in 2025 to restore its profitability after a recall of breathing equipment reduced its market value by 70 per cent. The company said it would complete half of the layoffs this year and the other half by 2025.

The new restructuring builds on a plan announced last October to cut staff by 5 per cent, or 4000 jobs. At the time, Philips discovered that the foam used in the machine could be toxic and recalled millions of ventilators used to treat sleep apnea.

Roy Jakobs, Philips's new chief executive, said: "Philips is not taking full advantage of the potential of a strong market position because it faces a series of major operational challenges."

CTOnews.com learned that Philips recently released its fourth-quarter and full-year results for 2022. In the fourth quarter, the group's sales reached 5.4 billion euros (currently about 39.69 billion yuan), driven by an improvement in the supply of components, comparable sales increased by 3%; due to reduced demand for COVID-19-related products, comparable orders decreased by 8%; fourth-quarter operating profit was 171 million euros, up 5.6% from a year earlier.

Adjusted earnings before interest, tax and amortisation (EBITA) in the fourth quarter were 651 million euros, up 0.6 per cent from a year earlier. The group's annual sales were 17.8 billion euros, and comparable sales fell 3% due to operational and supply challenges and declining sales in the Chinese market, with an adjusted EBITA of 1.318 billion euros (currently about 9.687 billion yuan), down 35.8% from a year earlier.