Philips job cuts in the Netherlands exceed expectations, unions fear more losses
Philips' ongoing reorganization has resulted in 2,600 job losses in the Netherlands, 700 more than initially announced, Financieele Dagblad reported. Unions expect further cuts as the restructuring continues through the end of the year.
Philips originally projected 1,900 job losses in the Netherlands, but the actual number has surpassed that. The company, which had 11,000 employees in the country in 2023, has been reducing its workforce over the past two years. The cuts are part of a broader cost-saving plan, including a 460 million euros spending reduction announced last month. Philips has posted losses for three consecutive years.
FNV trade union official Patrick Meerts said the company appears to be pulling out of the Netherlands. “We see no investment here, only job cuts and the sale of business units. That worries us,” he told FD.
Philips stated that the Netherlands remains central to the company but attributed the job losses to a shift toward decentralization. “We are giving more responsibility to the business units,” a spokesperson said.
The company’s 2024 annual report shows that 2,336 jobs have been cut in the Netherlands over the past two years. This includes 400 positions in Drachten after production was relocated to Indonesia and China. Other layoffs occurred at the central research facility, formerly known as Natlab. Another 250 jobs were lost this year following cuts at two units and the sale of a small subsidiary.
Philips once employed 40,000 people in the Netherlands out of a global workforce of 220,000. After divesting its lighting, television, and home appliance divisions, the company now employs 69,000 worldwide.
