The Dutch group Philips is in difficulty. It reported a net loss of 1.3 billion euros in the third quarter on Monday, mainly due to a large charge for a huge recall of faulty sleep apnea breathing machines. Highlighting the “need for better execution”, new Philips chief executive Roy Jakobs shared the “difficult but necessary decision to immediately reduce our workforce by approximately 4,000 positions worldwide”.
The group expects approximately 300 million euros in charges over the next few quarters following the immediate launch of these restructuring actions. But the reorganization is expected to generate annual savings of 300 million euros, according to the former electronics giant turned healthcare company.
A “potential” risk of long-term cancers
Philips had warned nearly two weeks ago to expect to register a charge of 1.3 billion euros in the third quarter for a huge recall of faulty sleep apnea breathing machines. As a result of this charge, the group recorded a loss of 1.3 billion euros in the third quarter, compared to a net profit of 3 billion euros a year ago, which was mainly due to the disposal in March of its home appliance business. As he also warned, group sales amounted to 4.3 billion euros, with comparable sales down 5% compared to the same period last year due to chain problems. ‘supply.
The Amsterdam-based company recalled the respirators in June last year after announcing that users risked inhaling or swallowing pieces of toxic sound-absorbing foam which could cause irritation, headaches. Philips also mentioned a “potential” risk of long-term cancers. Philips employs nearly 80,000 people in nearly 100 countries.