Philips is going to lay off another 6,000 of its staff, or around 8 per cent of the total workforce amid the medical equipment maker's drive to reduce expenses while wrestling with costly recalls of some of its consumer products.

The headcount slash, half of which will be implemented in 2023, comes on top of 4,000 job cuts already announced last year.

The firm said the measure would result in about 300 million euros (S$429 million) in costs in the coming quarters.

“That’s a sizeable and impactful measure, but we see it as necessary to address the rising cost across the company and the world, and also to make us more agile,” Chief Executive Officer Roy Jakobs told media.

The CEO said the firm is bracing for potential charges linked to the manufacturer’s sleep-therapy devices. 

Philips started its first recall of the products in June 2021 and has set aside about 885 million euros after researchers linked their degrading foam to cancer and respiratory issues. The company said that it is increasing the provisions by 85 million euros.

Philips has joined a growing number of manufacturers that are cutting costs to deal with supply-chain turmoil and inflation. 

Last week, chemical company Dow announced that it is reducing around 2,000 positions to offset rising energy expenses. Germany’s BASF said last year that it would adjust its European production network after domestic facilities began to lose money.

Philips aims to deliver low-single-digit comparable sales growth and a high-single-digit adjusted operating profit margin this year as supply chains improve. The company also reported better-than-expected sales and operating profit in the fourth quarter.