Philips is planning on laying off up to 400 people in Drachten between now and the start of 2027. It concerns 200 permanent jobs and 200 flexible positions which are being eliminated after a decision to move the production of baby bottles and pacifiers to Indonesia and an external supplier. Phillips currently employs 1,700 people in Drachten.
The possibility remains that some workers will be forced out, but Philips plans to first see if the headcount falls naturally before terminating workers. The company also said that it wants to help employees find new jobs in the coming years.
The technology group will continue producing razors and electric toothbrushes in the Friesland area. A spokesperson said the decision is part of a new strategy announced last year to make Philips more competitive.
According to Philips, the location in Drachten will be able to focus on its strengths due to the restructuring, which is mainly the complex and largely automated metalworking required for razors and toothbrushes. The move will also benefit cost-saving plans, as the organization will be more streamlined.
The company stated that they understand that this will have an impact on their employees, but that it is a necessary move to remain competitive and sustainably create value. The decision still needs to be considered and approved by the Works Council.
Trade union VHP2, which advocates for employees in the technology sector, has said that it was concerned about the reorganization. The Philips plans have also come as a surprise to the union because the factory in Drachten is known as “one of the smartest product locations in Europe.” Philips declared that its branch in the north of the country “is and will remain” a specialist production location.
FNV called it “a blow for the entire region.” The labor union’s chair, Wilma Nieveen, wants Philips to invest more in Drachten to make the activities profitable at the location. “Philips is choosing to export jobs and employment opportunities to China and Indonesia and is leaving hundreds of homes in the region in the cold,” she explained.
“I did not see this coming,” said Friso Douwstra, the provincial lawmaker who handles economic issues in Friesland. “It’s a shame. I had the feeling that production was increasingly returning to the Netherlands and to Drachten.”
Douwstra said he and an alderman in Smallingerland are still in talks with Philips. Drachten is part of the Smallingerland municipality.
