How Philips CEO Roy Jakobs is turning the company around after major recall

Today, I’m talking with Roy Jakobs. He’s the CEO of Royal Philips, which makes medical devices ranging from MRI machines to ventilators. Philips has a long history —- the company began in the late 19th century as a lightbulb manufacturer, and over the past century it’s grown and shrunk in various ways. Basically, while every other company has been trying to get bigger, Philips has been paring itself down to a tight focus on healthcare, and Roy and I talked about why that market is worth the focus.

Roy and I also talked about an ongoing controversy at Philips that he had a part in: In 2021, after years of consumer complaints, Philips was made to recall millions of its breathing machines. Those devices were eventually tied to more than 500 deaths. That’s a pretty big decision, with massive life-or-death consequences, and you’ll hear us talk about it in detail.

Links:

Problems reported with recalled Philips ventilators, BiPAP & CPAP machines | FDA

FDA says 561 deaths tied to recalled Philips sleep apnea machines | CBS News

Philips kept complaints about dangerous breathing machines secret | ProPublica

Top Philips executive approved sale of defective breathing machines | ProPublica

Philips reaches final pact with DOJ, FDA on ventilator recall | WSJ

Philips suspends U.S. sales of breathing machines after recall | NYT

CPAP maker reaches $479 million settlement on breathing device defects | NYT

Philips exits shrinking home entertainment business | Reuters

Original TSMC investor Philips sells off final shares | PC World

Philips unveils new AI-powered cardiovascular ultrasound | Mass Device

Transcript: https://www.theverge.com/e/24006874

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