Just before the holidays, Philips has announced another reorganization, this time focusing on HRM functions worldwide. This is causing great uncertainty and concern among the employees involved.
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Reorganization in HRM functions
Philips has announced that a number of HRM employees worldwide will be declared redundant, while a smaller number will be assigned new positions, such as People Partner Manager or People Leader Partner. In the Netherlands, 80 FTEs will disappear, of which 50 will be converted into new roles. This means that 30 positions will ultimately be permanently eliminated. It will become clear by 1 April 2025 at the latest who will be eligible for a new role and who will have to leave Philips.
A bitter pill for committed employees
This reorganization, following the major round of layoffs last year as a result of the new 'operating model', is not entirely unexpected. Nevertheless, it is a heavy blow, especially for the HRM employees who last year guided their colleagues in leaving the company and are now themselves affected by the ongoing rounds of cutbacks.
“It seems as if the reorganizations at Philips never stop since the introduction of the Centurion project in the 90s. Year after year we see reductions in various forms: the sale of business units, the relocation of work abroad or the complete cessation of activities. This has a disastrous effect on the motivation of the remaining employees, who repeatedly ask themselves: 'Am I next?'
Who benefits from these measures?
The only direct beneficiaries of these measures seem to be the shareholders. Philips focuses on short-term cost savings, but the long-term consequences appear to be mainly detrimental to the employees. Moreover, the quality of the products seems to be lost sight of.
R&D activities are shifting
To top it all off, it has been announced that part of the R&D activities of the Personal Health Business Unit Care & Beauty will be relocated to Drachten. This will result in 18 temporary employees losing their jobs. In addition, some of the permanent employees will effectively become redundant because they cannot move to Drachten due to the travel distance. It is not yet known exactly how many employees this will affect.
What remains of Philips in Eindhoven?
Many members are worriedly asking themselves: 'What will be left of Philips in Eindhoven?' These developments not only put pressure on the future of employees, but also pose a threat to the innovative power for which Philips was once known in Eindhoven.
What can we do?
De Unie is closely monitoring these developments and will continue to work for the interests of our members. We call on Philips to limit the impact on employees as much as possible and to ensure transparency during this process. Do you have any questions or need support? Please feel free to contact us.
Contact
If you have any questions regarding this matter, please contact the advocate Suat Koetloe by email suat.koetloe@unie.nl or call 06-5252 2061.
