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skilliard7 t1_j6jaedp wrote

Reply to comment by thieh in Philips to cut 13% of jobs in safety and profitability drive by 4Wf2n5

>To improve profitability while investing in safety, innovations will be targeted at "fewer, better resourced, and more impactful projects", Jakobs said.

Any time you make changes to an existing product, there are risks that it could introduce a defect with safety rammifications. So by limiting the number of changes to their product,(by axeing projects), it reduces the amount of opportunities for dangerous defects to be introduced.

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thieh t1_j6jazuj wrote

Apparently they don't believe that FTE is a resource. Just redirect existing people to fewer projects so they have "Resources".

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skilliard7 t1_j6jbop4 wrote

The problem is they also need to reduce costs in order to break even. They lost 1.33 Billion Euros last quarter. So some FTEs do need to be laid off to ensure that the company is sustainable.

They are cutting many products and reassigning people to fewer projects, as you suggested. It's just that layoffs are also happening.

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