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DMoney159 t1_j6ilhiz wrote

"Philips to cut 13% of jobs because everybody else is doing it"

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Legitimate_Plum9 t1_j6jzsok wrote

Phillips actually had a huge recall of a sleep apnea product that could have killed people…. Major fuck up, not another case of a tech laying people off despite being highly profitable.

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skilliard7 t1_j6jajxs wrote

It's not just because everyone is doing it, it's because the economy is in recession. Companies need to cut back to address macroeconomic risks.

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JPMoney81 t1_j6jiwb2 wrote

and to post higher profits so the shareholders can amass more wealth!

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skilliard7 t1_j6jt2fo wrote

Philips stock is down 70% in the past 2 years.... their stock was worth more in 1997 than it is today. How much do you expect shareholders to lose just to maintain jobs that aren't providing more value than they cost?

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JPMoney81 t1_j6k9i4o wrote

Philips' CEO's salary for 2023 is 6.7million USD. I can see another way to improve the company's financial situation.

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skilliard7 t1_j6kbsxa wrote

Philips lost $1.3 Billion USD last quarter. The CEO's salary is a drop in the bucket compared to how much they need to cut.

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JPMoney81 t1_j6kfc9b wrote

Would be a start.

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skilliard7 t1_j6kfhwa wrote

$6.7 Million isn't exactly competitive for a CEO of a company of that size. If they cut their salary to $3 Million, the CEO will likely find a job elsewhere, and they'll end up needing to pay several times more to find someone qualified to run the company.

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ISAMU13 t1_j6mxuk6 wrote

Won't work for $3 million?

I guess "Nobody wants to work anymore." /s

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skilliard7 t1_j6n19be wrote

The CEO will work, just for another company willing to pay a more competitive rate

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ISAMU13 t1_j6n9nyd wrote

How is he gonna get a more competitive rate when fucked up the last company? Why reward mediocrity?

He is no Satya Nadella.

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Nasmix t1_j6jwj1c wrote

Technically we are not in a recession - a slowing economy yes, but not recessionary - at least not as of now

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skilliard7 t1_j6jyn5h wrote

Nearly half of 2022's GDP gains were from increased inventories- stuff is getting produced, but not sold. It's a very strong leading indicator for an upcoming recession among many others.

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Nasmix t1_j6jz3nn wrote

Ok sure - however it’s more appropriate to say companies are reacting to a slower economy / lower demand than a recession

We likely will enter a recession though that remains to be seen

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