Philips Faces a Recall of Repaired Respiratory Devices

Philips won’t be issuing bonuses for its top management team, according to its annual report. The news comes hot on the heels of the company facing a recall of the 21,345 that were originally recalled in June of 2021.

Philips noted the reason behind top management forgoing bonuses was because of its performance and the negative experience of shareholders and other stakeholders.

The recall involves several models of Philips’ Trilogy 100 and 200 ventilators along with a Garbin model, according to FDA.

The agency cited two reasons behind the recall:

FDA said as of Jan. 4, 2023, there have been 82 MDRs (63 MDRs for foam delamination and 19 MDRs for particulate debris contamination) and no deaths.

The recall debacle, which began nearly two years ago, has taken its toll on the Amsterdam, Netherlands-based company.

Since it began, Philips has seen a 70% plunge in its market value and began 2023 by announcing it would cut 6,000 jobs. Just a few months before, Philips cut 4,000 jobs.

Philips is currently in confidential discussions with the U.S. Department of Justice regarding a possible agreement. French prosecutors opened up a preliminary investigation into the recall in September of 2022.

The company even saw a change in leadership. Long-time Philips CEO Frans van Houten announced he was stepping down from the position in August of 2022. Roy Jakobs, took the helm of the company in October.