Healthcare tech giant Philips scraps 4,000 staff worldwide

Oct 23, 2022, 2:24 PM | Updated: Oct 24, 2022, 2:26 am

THE HAGUE, Netherlands (AP) — Dutch healthcare technology giant Philips is scrapping 4,000 staff worldwide amid the fallout from a recall of sleep apnea machines and economic headwinds, the company announced Monday as it unveiled a 1.3 billion euro ($1.28 billion) third-quarter net loss.

The job cuts amount to about 5% of the company’s global workforce and are expected to save it 300 million euros annually, Philips said.

New CEO Roy Jakobs, who took the reins earlier this month, acknowledged that “we face multiple challenges and our Q3 2022 performance reflects this.” He called the job cuts “difficult, but necessary.”

Last year, the company announced a recall of sleep apnea machines saying that foam used in the devices could be a health risk. Philips has sold millions such machines worldwide and said it is taking a 1.3-billion euro hit in the third quarter for “the impairment of goodwill” of the subsidiary that makes them.

Looking ahead, Philips said that it sees “prolonged operational and supply challenges, a worsening macro-economic environment and continued uncertainty related to COVID-19 measures in China, which will be partly offset by Philips’ productivity and pricing actions.”

The company said it expects “mid-single-digit comparable sales decline” in the last three months of the year.

Sales for the third quarter reached 4.3 billion euros, up from 4.1 billion in last year’s third quarter, but the company said that comparable sales — a measure that strips out the effects of currency movements and acquisitions and divestments — declined by 5% mainly due to “supply chain challenges, the COVID situation in China and the Russia-Ukraine war.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Mt. Rainier death...

Associated Press

Missing Mount Rainier climber’s body found in crevasse; he was celebrating 80th birthday

Search crews on Mount Rainier have found the body of a man matching the description of an 80-year-old solo climber reported missing

16 hours ago

Washington gun restrictions...

Associated Press

Judge rejects attempt to block new Washington state gun restrictions

A federal judge on Tuesday rejected a request to block a new Washington state law banning the sale of certain semi-automatic rifles

2 days ago

FILE - A man walks past a Microsoft sign set up for the Microsoft BUILD conference, April 28, 2015,...

Associated Press

Microsoft will pay $20M to settle U.S. charges of illegally collecting children’s data

Microsoft will pay a fine of $20 million to settle Federal Trade Commission charges that it illegally collected and retained the data of children

2 days ago

FILE - OpenAI's CEO Sam Altman gestures while speaking at University College London as part of his ...

Associated Press

OpenAI boss ‘heartened’ by talks with world leaders over will to contain AI risks

OpenAI CEO Sam Altman said Monday he was encouraged by a desire shown by world leaders to contain any risks posed by the artificial intelligence technology his company and others are developing.

3 days ago

FILE - The draft of a bill that President Joe Biden and House Speaker Kevin McCarthy of Calif., neg...

Associated Press

Debt deal imposes new work requirements for food aid and that frustrates many Democrats

Democrats are deeply conflicted about the debt ceiling deal, fearing damage has been done to safety net programs

4 days ago

Seattle lawyer...

Associated Press

Lawsuit alleging ex-deputy falsified arrest report settled for $250K

A lawsuit filed by a Washington oyster farmer accusing a former county deputy of falsifying an arrest report

4 days ago

Sponsored Articles

Medicare fraud...

If you’re on Medicare, you can help stop fraud!

Fraud costs Medicare an estimated $60 billion each year and ultimately raises the cost of health care for everyone.

Men's Health Month...

Men’s Health Month: Why It’s Important to Speak About Your Health

June is Men’s Health Month, with the goal to raise awareness about men’s health and to encourage men to speak about their health.

Internet Washington...

Major Internet Upgrade and Expansion Planned This Year in Washington State

Comcast is investing $280 million this year to offer multi-gigabit Internet speeds to more than four million locations.

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!

Healthcare tech giant Philips scraps 4,000 staff worldwide