Amid planned layoffs that are expected to affect 4,000 employees globally, Philips isn’t saying how many people at its North American headquarters in Cambridge will be let go.
Philips, the Dutch maker of medical equipment and consumer goods, is looking to lay off just over 5% of its workforce, since the company employs around 78,000 people. CEO Roy Jakobs said on the company’s third-quarter earnings call last month that the U.S. would see the “highest impact” of those cuts, since the country is home to most of Philips’ employees.
Philips employs about 1,400 people in Cambridge, according to spokesperson Steve Klink. The company moved its North American headquarters to the new facility on Jacobs Street in 2020 after about a decade in Andover.
“The 4,000 roles are determined by looking where we can stop, streamline or simplify activities across every business, market and function across the company,” Klink said in an email to the Business Journal. “Currently, we are looking into the implication for the U.S. and as indicated we will carefully follow the local regulations and processes and act with respect towards any impacted colleagues.”
Klink declined to provide specific details about how the potential cuts would affect Massachusetts jobs.
Sign up for the BioFlash e-newsletter, your free weekly source for medical device and life sciences news in Greater Boston.
Jakobs indicated that the cuts would come for business units that are driving fewer sales. During the third quarter of this year, the company’s Connected Care unit saw a 15% year-over-year increase, while the Diagnosis and Treatment unit decreased about 2%.
The Connected Care portfolio includes remote patient monitoring solutions, telehealth offerings and a portable ultrasound machine. Several such offerings are under development at Philips’ research center in Cambridge, including equipment that allows scientists to measure a patient’s heart and breathing rates contact-free.
The layoffs are expected to take place in the “coming quarters,” Jakobs said on the earnings call. Altogether, the restructuring costs will come to 300 million euros — around $295.41 million in U.S. dollars — half of which will be realized in the fourth quarter.
© 2022 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 1, 2021) and Privacy Policy and Cookie Statement (updated July 1, 2022). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

source

Shop Sephari