Healthcare tech giant Philips scraps 4,000 staff worldwide

Oct 24, 2022, 2:24 AM | Updated: 2:49 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 This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Reports say 2022 was good for Nevada casinos, Vegas tourism

LAS VEGAS (AP) — The year 2022 was good for gambling and tourism in Nevada, where winnings at casinos statewide set calendar year records and Las Vegas visitor tallies nearly reached levels before the coronavirus pandemic. “Las Vegas enjoyed a robust recovery trajectory across core tourism indicators in 2022,” the regional Convention and Visitors Authority […]
16 hours ago
Elliot Morehead, 16 of Sioux Falls, tells a House Health and Human Services committee Tuesday, Jan....
Associated Press

S. Dakota lawmakers push bill to bar transgender youth care

PIERRE, S.D. (AP) — A state House committee voted Tuesday to advance a bill that would ban gender-affirming care for transgender youth in South Dakota. Supporters argued a bill barring youth from accessing puberty blockers, hormones and surgery would protect adolescents from irreversible damage, while opponents argued it only blocks them from becoming their authentic […]
16 hours ago
Associated Press

GM conditionally OKs $650M Nevada lithium mine investment

RENO, Nev. (AP) — General Motors Co. has conditionally agreed to invest $650 million in Lithium Americas Corp. in a deal that will give GM exclusive access to the first phase of a mine planned near the Nevada-Oregon line with the largest known source of lithium in the U.S. The equity investment the companies announced […]
16 hours ago
FILE - Travelers wade through the line to drop off bags at the Southwest Airlines check-in counter ...
Associated Press

Lawmakers aim to raise penalties for US airline disruptions

Senators who want to impose tougher penalties when U.S. airlines strand or delay passengers say they finally might be able to turn their ideas into law because of outrage over debacles like the one at Southwest Airlines in December. Democrats Richard Blumenthal of Connecticut and Edward Markey of Massachusetts said Tuesday they will again offer […]
16 hours ago
FILE - President Joe Biden, right, at the top of a meeting with congressional leaders to discuss le...
Associated Press

Biden, McCarthy, once breakfast mates, wrangle over US debt

WASHINGTON (AP) — Not so long ago, Joe Biden and Republican leader Kevin McCarthy used to talk things over at breakfast in Biden’s vice presidential home at the Naval Observatory. Biden was intent in those days on “keeping up relations with the opposition party,” as he writes in his memoir, and the new House majority […]
16 hours ago
Associated Press

Vermont lawmakers mull bills to protect abortion providers

Vermont lawmakers are taking testimony on a pair of bills that aim to protect health care workers who provide abortions and gender-affirming health care in Vermont from legal and disciplinary action from states that limit or ban those practices. The bills were introduced seven months after the U.S. Supreme Court overturned Roe v. Wade and […]
16 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
...
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Healthcare tech giant Philips scraps 4,000 staff worldwide