Only for employees
Reorganization at Philips
Has Philips announced that your position is being eliminated, or have you received a dismissal proposal or departure arrangement?
Are you facing a reorganization at Philips? It is not happening all at once, but department by department and site by site, from the High Tech Campus in Eindhoven to the factory in Drachten. This page explains your position under Dutch employment law, including for highly skilled migrants and internationals working at Philips in the Netherlands.
Does this apply to you?
- Your position is being eliminated or your department is being restructured
- You have been declared redundant
- You have received a dismissal proposal
- You work in R&D, as a knowledge worker or as an international
- You have received a settlement agreement
Why employees turn to ReorgLegal
ReorgLegal specialises in reorganizations and works solely for employees, never for employers. We assess your proposal and stand beside you.
Do not wait too long. Reorganizations often come with short response deadlines. Have any proposal assessed before you agree to it.
The situation at Philips
A reorganization at Philips is not a one-off event. The company has been changing for several years now in successive rounds, each time affecting different departments and different sites.
Department by department
Over the past years the announcements have followed one another: at the central innovation and strategy department around ninety positions disappeared and hundreds of employees were reassigned or transferred, with a stronger focus on data and artificial intelligence as the stated reason. Positions have also been eliminated or shifted at other departments and at production sites such as Drachten.
For you, what matters most is which round you fall under and what that means for your position in practice.
More jobs than initially expected
In practice the reorganization at Philips has been larger than initially expected. Since 2023, considerably more positions have disappeared in the Netherlands than the first forecasts indicated, spread across the High Tech Campus in Eindhoven, Best, Amsterdam and Drachten, among others.
The figures and arrangements around a reorganization can change. This page was last updated in July 2026; the facts shown apply as far as known at that time.
In short
- Reorganization in several successive rounds
- Spread across departments and sites (Eindhoven, Best, Amsterdam, Drachten)
- Reasons: a focus on data and AI, cost savings and shifting production
- An ongoing central social plan applies
- Many of those affected work in R&D or as knowledge workers
- Have your situation assessed before you sign
How does a reorganization at Philips work?
Each reorganization round at Philips runs through the same phases, from the definition of positions to a possible departure. At every phase you have room to have your position reviewed and, where needed, to adjust course.
Which positions are eliminated and who is affected
Philips first establishes which positions within an affected department will disappear and which positions are mutually interchangeable. Within such a group of interchangeable positions the dismissal order is not open: the reflection principle sets that order in principle, save for the statutory exceptions. Because each round affects a different department, the precise definition of your job category can strongly influence your position.
Reassignment and job-to-job support
On top of the statutory reassignment obligation, the social plan emphasises job-to-job support. If you are redundant, Philips must first investigate whether a suitable position is available for you within a reasonable period, if necessary after retraining. A departure only comes into view once that investigation yields nothing.
An offer or a procedure
If reassignment does not materialise, Philips will usually offer you to leave through a settlement agreement; if you do not agree, a dismissal application to the UWV may follow. Both routes deserve a thorough legal check before you put your signature to anything.
Room to adjust course
- Once your round is known: request the social plan and your personal status
- If you are redundant: have the reflection principle and the selection made recalculated
- If another role is offered: check whether it is genuinely suitable
- If a proposal is on the table: sign nothing without a legal review
What does this mean for you?
A reorganization at Philips follows the statutory rules for dismissal in a reorganization, supplemented by the collective agreement and the social plan. You have rights at each of these points.
Who becomes redundant
Who becomes redundant within a group of interchangeable positions is not for Philips to choose freely. The reflection principle sets that order in principle, save for the statutory exceptions. An incorrect job-category definition or selection can strengthen your position.
Reassignment first
Dismissal is only possible after Philips has investigated whether a suitable position is available for you within a reasonable period, if necessary after retraining. If that investigation is missing or amounts to little, a dismissal procedure can fail.
Your compensation
If your employment ends on Philips's initiative, there is usually an entitlement to the statutory transition payment, unless the social plan or the scheme applicable to you provides different or additional compensation. Have it recalculated whether the amount offered matches your years of service and salary.
The settlement agreement
If you choose to leave by mutual consent, Philips records this in a settlement agreement. Only sign once the content and its consequences have been reviewed.
The central social plan at Philips
Philips and the trade unions have agreed a central social plan that spans the successive reorganizations. According to the unions it has been extended and runs until the end of 2028.
One arrangement across the rounds
Because the reorganization runs in different rounds and across different departments, the social plan is the common safety net. It covers, among other things, your job-to-job support, reassignment, compensation and a budget for outplacement and training. Support may be provided for some fixed-term contracts, but that does not mean you then automatically fall under all the other parts of the social plan.
The unions and VHP2
The social plan and the collective agreement were concluded with FNV, CNV, De Unie and VHP2. The latter represents in particular the interests of higher-educated and managerial staff, of whom Philips employs relatively many. Which part of the arrangements applies to you can depend on the applicability of the collective agreement, the social plan and the specific scheme that applies to your position.
Not sure what the social plan offers you? Have your situation assessed before you agree.
Philips-specific points
- One central social plan across several rounds
- Job-to-job support and reassignment
- A budget for outplacement and training
- Four unions, including VHP2 for senior staff
- Your arrangement may depend on position and level
Do you work in R&D, as a knowledge worker or as an international?
A large share of Philips employees work in research and development, and many of them are highly educated or were brought to the Netherlands. For this group, a departure often involves matters that go beyond compensation alone.
Bonus and shares
In addition to your salary, you may be entitled to a bonus or to shares. Shares that have not yet vested (RSUs) can lapse on dismissal, depending on the share plan, the vesting conditions and the reason for termination. What you receive depends on the arrangements and on what you agree. We also look at your shares and RSUs when you leave.
Are you working as an international?
If you lose your job as a highly skilled migrant, you have a limited search period to find new work with a recognised employer, and that period is linked to the end date in your agreement. A dismissal as an expat therefore calls for careful alignment of those deadlines and attention to the consequences for your right of residence.
Every situation is different. An individual assessment can show whether Philips is applying the rules correctly. Have your situation assessed.
How we help you further
- We assess your proposal and the social plan of the relevant round
- We check the reflection principle and the reassignment effort
- We review your compensation and the final discharge
- We watch your bonus, shares and, for internationals, your right of residence, in so far as those rights arise from your employment contract, bonus scheme or share plan
- We work solely for you as the employee, never for Philips
What you can do now
If your position at Philips is affected by a reorganization round, take the following steps before you sign anything. The sooner you know where you stand legally, the more room you keep.
- Request the social plan, the collective agreement terms and your own proposal in writing
- Have it checked whether the reflection principle and the reassignment investigation are correct
- Weigh whether an offered role genuinely suits you
- Recalculate the compensation and keep an eye on your bonus and shares
- Do not sign a settlement agreement before it has been reviewed
Is there a dismissal proposal or settlement agreement from Philips? Put it to us for review before you decide definitively.
When to put your situation to us
- There is a settlement agreement on the table
- Your position is disappearing or you have been declared redundant
- You are losing your job while working in R&D or as an international
- You have doubts about the amount of the compensation, your shares or your reassignment
- Your response deadline expires within a few days
Frequently asked questions
Questions that Philips employees regularly put to us during a reorganization round.
Have you received a dismissal proposal or settlement agreement? Put it to us for review.
Which reorganization round do I fall under?
That depends on your department and position. Because Philips reorganizes department by department, how your job category is defined and which part of the social plan applies to you can make a difference. The round you fall under does not affect your statutory dismissal protection, but it does affect which social plan arrangements apply to you. Have this checked for your situation.
Will I receive compensation?
If your employment ends on Philips's initiative, there is usually an entitlement to the statutory transition payment, unless the social plan or the scheme applicable to you provides different or additional compensation. What you ultimately receive depends on that scheme and on your years of service and salary. Have the amount offered recalculated.
What happens to my shares or RSUs?
Shares that have not yet become unconditional can lapse on a dismissal; that depends on the share plan and the vesting conditions. Have this form part of the assessment.
What if I am declared redundant?
Redundancy is an intermediate step, not a final dismissal. An incorrectly applied reflection principle or a flawed reassignment investigation can strengthen your position.
Received a settlement agreement? Get a free review.
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