MNC layoffs: Philips to recall devices for treating people suffering from sleep apnea in 2021
The Hague:
The beleaguered Dutch medical technology maker Philips said Monday it will cut another 6,000 jobs worldwide following new losses caused by a massive recall of defective sleep respirators. bottom.
Chief Executive Roy Jacobs has announced “further headcount reductions that are difficult but necessary” by 2025.
The Amsterdam-based company announced a net loss of €105 million ($114 million) in the fourth quarter of 2022 and €1.605 billion for the whole year, largely due to recalls. .
Philips has announced a global recall of appliances to treat people suffering from sleep apnea in 2021 and is currently facing a number of lawsuits in the US.
This was followed by concerns that patients were at risk of “potential toxicity and carcinogenicity” if they inhaled or swallowed pieces of the machine’s degraded sound deadening foam.
Jakobs, who took over in October, said Philips needs to “improve performance and simplify how we work to increase agility and productivity.”
“This includes further difficult but necessary cuts to reduce around 6,000 roles worldwide by 2025,” he added.
A total of 3,000 new jobs will be eliminated in 2023.
Jakobs said Philips will also focus on “strengthening patient safety and quality control and completing the Respironics recall.”
Starting as a lighting company over 130 years ago, Philips has undergone a major transformation in recent years, selling assets to focus on manufacturing high-end electronic healthcare products.
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