An ongoing reorganisation at medical technology company Philips has led to the loss of 2,600 jobs in the Netherlands, 700 more than expected, the Financieele Dagblad reported on Tuesday. The unions expect even more jobs to go, given the reorganisation is set to continue until the end of this year.

The jobs have been cut gradually since 2023, when the company had a workforce of 11,000 in the Netherlands, the paper said. Philips had previously stated it would reduce its Dutch workforce by 1,900.

Unions say they fear further job losses, particularly given that the company announced last month it aims to cut spending by a further $500 million. The company has now posted a loss for three consecutive years.

The FNV trade union said it fears the company is in the process of withdrawing from the Netherlands altogether. “We have not seen any investment in the Netherlands, only cuts and the disposal of units,” said spokesman Patrick Meerts. “We are concerned.”

Philips said in a reaction that the Netherlands will remain the company’s “beating heart”. However, it said, the relatively large number of job losses in the Netherlands is due to a new, more decentralised way of working.

“We are giving more responsibility to the business units,” the spokesman said. Most business units, the FD reported, are based abroad.

Philips’ 2024 annual report shows that the workforce in the Netherlands has gone down by 2,336 over the past two years. That total includes some 400 jobs in Drachten after the company shifted some production to Indonesia and China. Other jobs have been cut at its central research lab, formally Natlab.

A further 250 jobs have gone already this year, following cuts at two separate units and the sale of a small subsidiary, the FD said.

Philips had a workforce of 220,000 25 years ago, of whom 40,000 were in the Netherlands. The company, which has divested its lighting division, television arm, and domestic appliances production, now has a workforce of 69,000 worldwide.