Philips to Cut 4,000 Jobs to Reduce Costs

Philips will reduce its workforce by 4,000 jobs as the Dutch company announced a restructuring package to reduce operating expenses and improve performance.

The severance and termination-related costs are expected to be approximately €300 million ($295 million) in the coming quarters, Philips said Monday in a statement accompanying its earnings statement.

The company continues to face court cases over noise-dampening foam inside the ventilators. Users have alleged that inhaling the foam after it disintegrates poses a cancer risk. Philips started its first recall of the devices in June of last year and has made financial provisions of around €885 million.