Philips CEO Starts Tenure by Cutting 4,000 Jobs Amid Recall Woes
- New CEO says company hasn’t lived up to expectations
- Philips to address various facets of sleep-apnea recall
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Royal Philips NV will cut 4,000 jobs just days after a new chief executive officer took over, as the Dutch company seeks to reduce expenses while it wrestles with a costly recall of a consumer medical device.
The cuts amount to about 5% of Philips’s workforce, and the company will book severance and termination-related costs of about €300 million ($295 million) in the coming quarters, Philips said Monday. The company announced the steps a good week after Roy Jakobs took over from Frans van Houten, who had held the CEO position for 12 years.