The company made this move to offset losses incurred after the withdrawal of respiratory devices from the market. These devices caused the company to lose 70% of its market value.

Philips was forced to recall millions of ventilators used to treat sleep apnoea due to concerns that the foam used in these devices may be toxic to patients. The original layoffs of 4,000 employees planned for October last year have now been expanded to include an additional 2,000 employees. The first half of the employees will be laid off this year and the remaining 3,000 by the year 2025.

The company's CEO Roy Jacobs said the company is not performing to its full potential and is facing several operational challenges. He hopes that streamlining the organization will bring greater safety and quality of service to patients. The company also plans to improve its supply reliability in the coming months.

Philips posted an EBITA profit of €651 million in the last three months of 2022, up €4 million compared to the same period last year. Despite analysts' expectations, who predicted a drop in profits, the company saw a 3% increase in sales. However, overall for 2022, a shortage of parts caused a 3% drop.