Global technology firm Philips today announced it will cut 4,000 jobs to "improve productivity and increase agility" as the company released its third quarter results.
The Q3 sales were affected by operational and supply challenges, Philips said in a statement.
Group sales amounted to 4.3 billion euros, with a 5 per cent comparable sales decline, in line with the update provided on October 12, the company said.
Philips CEO Roy Jakobs in the statement said the process to improve productivity and agility "includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do not take lightly and will implement with respect towards impacted colleagues."
"These initial actions are needed to start turning the company around in order to realize Philips' profitable growth potential and create value for all our stakeholders," Mr Jakobs said.
Philips' performance in the quarter was impacted by operational and supply challenges, inflationary pressures, the COVID situation in China and the Russia-Ukraine war.
Operating cash flow was an outflow of 180 million euros, mainly due to lower cash earnings, increased inventories and higher consumption of provisions.
Comparable order intake declined 6 per cent on the back of strong 47 per cent growth in Q3 2021. The book-to-bill ratio was 1.18, and the equipment order book grew further in the quarter.
