The Dutch electronics giant Philips will reduce its workforce in the medical equipment division by about five percent globally, which totals 32,000 employees, said a company spokesperson to AFP.
"In that sector, about five percent of all workers will be laid off. The sector employs a total of 32,000 workers, which means that 1,600 will lose their jobs," said Arent Jan Hesselink."We want to take all possible measures to maintain our profit levels despite the current weak economic scenario and possibly even improve them," he said. Most employees in the medical equipment division are located in the United States, "but that does not mean that workers will lose their jobs where they are most numerous," warned the company spokesperson.
Hesselink stated that Philips wants to be best prepared for the consequences of reduced economic growth or even recession, which many predict will follow soon. "Our next step will be to see what will ultimately happen and when. Then we will have to negotiate with people." Philips CEO Gerard Kleisterlee said this month that "given the limited scope of the current economic scenario, we must take certain measures to maintain our profit." Philips reported a net profit of 357 million euros in the third quarter of this year, which is 7.8 percent higher than in the previous quarter, and sales revenues of 6.3 billion euros. (H)
