The company, which currently employed 80,000 people worldwide, lost 1. 3 billion euros as a result of the recall of defective devices, resulting in a net loss of the same amount.
While facing numerous lawsuits, Philips is negotiating with American authorities on a final settlement involving defective equipment that allow users who struggle with sleep breathing at danger of inhaling toxic foam.
The company’s newly appointed CEO Roy Jacobs stated, “We are confronting multiple issues,” adding that the business should take “urgent steps” to cut costs. Jacobs assumed his position earlier this month.
This includes the challenging choice, but it is essential to cut our staff internationally by around 4,000 individuals right away.
He emphasised that the countries with the most employment losses will be the United States, the Netherlands, India, and China.
Philips shares decreased by 0.
75% of the morning trade on the Amsterdam Stock Exchange.
Following the company’s switch during the previous 12 years from consumer electronics to a manufacturer of medical devices, France van Huttin, the former CEO, left earlier this month.
Jacobs acknowledged that the “Philips”, which is based in Amsterdam, had a headquarters to “rebuild confidence” and did not “live up to . . . the expectations” of its shareholders in recent years.
“These initial steps are required to start shifting the company’s course in order to reach lucrative growth potential,” he stated.
Philips’ “substantial loss” results in the loss of 4,000 employees.
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