The CEO of Philips is feeling more positive about his business

Roy Jakobs was appointed CEO in the midst of a costly product recall and difficulties in China, and he spent his first year reviving the healthtech business.

There wasn't much to celebrate when Roy Jakobs was appointed president and chief executive officer of Royal Philips, or Koninklijke Philips N.V., as it is known in the Netherlands. The enormous recall of breathing equipment, along with other issues, had caused the Dutch company to incur losses as investor enthusiasm and sales were muted. This led Jakobs to quickly eliminate thousands of positions after taking over in October 2022. The following year, he gave his approval to a plan that would pay at least $429 million to resolve economic damage claims pertaining to the recall.

Even though Jakobs still has to deal with a drop in orders and other difficulties, such as the recall of about 150 MRI scanners that could explode last month, he has been successful in turning around the 133-year-old business. Royal Philips' comparable sales increased by 11% in the third quarter to €4.5 billion, or around $5 billion. The company's operating profitability was €224 million, following a loss of over €1.5 billion in the previous year.

After eliminating positions and streamlining the business, his attention is now on propelling the company's technological expansion in areas like informatics, image-guided therapy, and personal care. He is thrilled about AI's potential to enhance his goods and make them more accessible to a wider audience, particularly in underprivileged areas.

He claims that as a major player in the global life-saving device market, Philips and other businesses must serve clients in a variety of countries and political environments.