On October 15, Philips CEO Frans van Houten will vacate his position as Dutch health technology business president. The company said on Tuesday that Roy Jakobs, head of the Connected Care operations, will take over.
According to a statement from Philips, “the supervisory board and incumbent Philips CEO Frans van Houten have agreed that the time is ripe for the change in leadership with the nearing end of his third term.”
The appointment of Roy Jakobs as President and CEO, effective October 15 2022, will be made during an extraordinary general meeting of shareholders scheduled for next month on September 30.
The company reported a larger-than-anticipated decline in second-quarter core earnings last month and blamed sales declines in China on supply bottlenecks and lockdowns.
The company forecasted second-half growth of 6 per cent to 9 per cent based on a solid order backlog, but it reduced its projection for full-year sales growth from 3per cent to 5per cent to between 1 per cent and 3per cent.
Since June 2021, Philips has struggled with the effects of a widespread recall of ventilators, which has caused a decline in the market worth almost 15 billion euros.
Philips stated that sound-dampening foam could break down, emitting particles that irritate the lungs and potentially hazardous or cancer-causing chemicals. The estimated cost of the recall and repairs, which the business recently stated were almost halfway finished, is 900 million euros.