London, Jan 30,2023: Tech firm Philips on Monday said that it plans to cut 6,000 jobs by 2025, including around 3,000 this year, to enhance performance and drive value creation.

In October, last year, the company announced to slash 4,000 jobs as it faced “multiple challenges” which was reflected in its Q3 earnings.

The Dutch health-tech company further said that the simplified operating model will make it more agile and competitive while reducing costs, reports Market Watch.

The job cuts announced on Monday are in addition to those outlined in October.

Philips stated that it will now concentrate on extracting the full value of its portfolio through a focused organic growth strategy.

Moreover, the Market Watch report mentioned that the disclosure came as the company reported a net loss for the fourth quarter of last year due to higher costs, but it also stated that it has seen some improvement in the period and is taking steps to address operational challenges in an uncertain environment.

The tech company, which sells products such as MRI scanners and ultrasound machines, reported a net loss attributable to shareholders of 106 million euros ($170.6 million) in the fourth quarter of 2021, compared to a profit of 157 million euros in the previous quarter.

The company stated that cost inflation harmed its performance, which was partially offset by pricing and productivity measures, said the report.