Remind me how cutting jobs drive safety.

Less workers getting injured!

Less workers to file a potential lawsuit against the company

No, less workers to report injuries to.

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

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Safety of their products. In the article (yes I read articles like a loser) it is written that they want to focus their resources on fewer products so that each project gets more resources and is less likely to experience safety problems.

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>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.

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.

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

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.

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

Having worked for Philips in the past, I think it's clear they have been in "managed decline" for at least two decades, probably at least three.

They've reduced the breath of what they do, and sold off ever more pieces (NXP, lighting...) ...

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?

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

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.

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

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.

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

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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They've been increasingly just trying to jump on bandwagons, rather than seek long-term innovation.

Also >15 years ago they said their target market was over-50's.

Will their target-market eventually die out?!

Would be a start.

$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.

By cutting labor it increases the safety of massive bonuses for do nothing executives.

These execs aren’t even trying now

The good thing is that this bullshit won’t work

This is in that CPAP department that killed a bunch of people? No? Oh okay…

Philips, a company destroyed for the short term pursuit of "shareholder value" and bonuses for leadership.

ASML was a Philips spin-off... but not their "core business".

How does cutting jobs increase safety?

don't need to make a report if nobody was there to see the accident.

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Won't work for $3 million?

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

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

Philips is returning back to its core business that is only hardware or medical devices. They have had a tough time selling software/informatics solutions.

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

He is no Satya Nadella.