Philips to cut 4,000 jobs in bid to improve performance

Royal Philips NV will reduce its workforce by 4,000 jobs as the Dutch company aims to reduce operating expenses while wrestling with a costly recall of its sleep-apnea treatment devices. The severance and termination-related costs are expected to be approximately €300 million ($295 million) in the coming quarters, Philips said Monday.

The restructuring comes as Roy Jakobs replaced Frans van Houten as chief executive officer this month, who had held the position for 12 years. Philips’s priority is “to improve execution so that we can start rebuilding the trust of patients, consumers and customers," Jakobs said in a statement. These steps include strengthening patient safety and quality management as well as “urgently improving our supply chain operations.