Philips recalled faulty ventilators, BiPAP machines, and CPAP machines in 2021 due to potential health risks.
Dutch health tech major Philips reportedly announced to scrap another 6,000 jobs across the globe following a loss in the fourth quarter of 2022. The move comes just a few months after the company announced to cut 4,000 jobs.
The company’s chief Roy Jakobs said, and as read on Reuters, that the decision “is a very strong plan to secure the future of Philips” as the challenges that the company is facing are serious, and it is addressing them head-on. Philips has been grappling with a decline in sales since it recalled faulty ventilators, BiPAP machines, and CPAP machines in 2021 due to potential health risks.
“The polyester-based polyurethane (PE-PUR) foam used in these (Philips) devices to reduce sound and vibration can break down. If this occurs, black pieces of foam, or certain chemicals that are not visible, could be breathed in or swallowed by the person using the device. These issues could potentially result in serious injury and require medical intervention to prevent permanent injury,” according to a report by U.S. FDA.
The Amsterdam-headquartered company reported a net loss of 105 million euros in the fourth quarter of 2022, according to AFP. For the year, it reported a loss of 1.6 billion euros last year, the news agency noted; adding that another 3,000 job cuts are expected this year.
Meanwhile, several multinational tech giants like Microsoft, Meta, and Twitter have also trimmed their workforce as they brace for a global economic slowdown. Google parent Alphabet has recently laid off approximately 12,000 employees stating that the company was prepared for “a different economic reality.”