The Hague:
Dutch medical technology maker Philips said on Monday it would cut an additional 6,000 jobs worldwide following a recall of faulty sleep apnea devices.
CEO Roy Jacobs announced “difficult but necessary cuts to our workforce” by 2025, three months after announcing another 4,000 layoffs.
The Amsterdam-based company posted a net loss of 105 million euros ($114 million) in the fourth quarter of 2022 and a total loss of 1.605 billion euros last year, mainly due to the recall.
Philips has announced a 2021 global recall of its devices used to treat sleep apnea and is now facing multiple lawsuits in the United States.
It follows that patients could be at risk of “toxic and carcinogenic effects” if they inhale or swallow the damaged sound-deadening foam on the machines.
Jacobs Phillips, who took over in October, said: “We need to improve performance and simplify our way of working to improve our efficiency and productivity.”
“This will involve a difficult but necessary further reduction in our workforce of 6,000 roles globally by 2025,” he said.
A total of 3,000 of the new job cuts will be made by 2023.
Jacobs said Philips will focus on “strengthening our patient safety and quality management and completing respiratory recalls.”
Started as a lighting company 130 years ago, Philips has undergone significant changes in recent years, focusing on the production of high-quality electronic health care products.
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
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