This new "difficult but necessary" workforce reduction comes on top of the loss of 4,000 jobs announced by the group in October, said Philips CEO Roy Jakobs in a press release.

"2022 has been a very challenging year for Philips and its shareholders. We are taking strong action to improve our performance on an urgent basis," he added.

The group, which currently employs nearly 80,000 people worldwide, suffered a net loss of 105 million euros in the fourth quarter of 2022, compared to a net profit of 151 million in the last quarter of 2021. Over the year 2022, the net loss is 1.6 billion euros, against a net profit of 3.3 billion in 2021. It is largely linked to the recall of respirators.

About 3,000 of the 6,000 deletions announced on Monday will be implemented in 2023. The rest will be implemented by 2025, added the former electronics giant, turned health care company.

Philips recalled the respirators in June 2021 after announcing that users were at risk of inhaling or swallowing pieces of toxic sound-absorbing foam which could cause irritation, headaches.

The group then also mentioned a “potential” risk of long-term cancers.

Philips CEO Roy Jakobs at a general meeting of shareholders of the group in Amsterdam, September 30, 2022 © Eva Plevier / ANP / AFP / Archives

Philips has since recently assured that, according to extensive testing, the devices are "within safe limits" while stating that its advice to patients and doctors remains unchanged: stop using the ventilator and consider alternative treatments.

The group is focusing on its desire to "strengthen patient safety and the quality of management" following the recall, Mr. Jakobs said on Monday.

Philips has produced around 90% of the replacement devices it needs to supply to patients, Philips added.

But he is in the process of increasing the number of replacements, which leads to an additional provision of 85 million euros, according to the Dutch company.

And the group has not yet included in its accounts any compensation it will have to pay in the United States because the sums remain "uncertain".

Philips Respironics is indeed the subject of an investigation by the US Department of Justice (DoJ).

He is a defendant in several class action and individual personal injury claims, and is in talks with the US health authority FDA about a final settlement over defective respirators.

© 2023 AFP