Royal Philips is replacing its CEO Frans van Houten, who's been in the role for more than a decade, with Roy Jakobs after the company recalled millions of ventilators in June 2021 that have since been tied to 168 deaths.
After the recall last year, revenue continues to slip. Compared to last year's second quarter, revenue for Philips' Connected Care unit, which includes the respirators, fell 13 percent in 2022's second quarter.
"With the end of his third term in sight, the time is right for the change in leadership," Philips said in an Aug. 16 press release.
Mr. Jakobs will become CEO Oct. 15, and Mr. van Houten will act as an adviser until April 30, 2023, according to the Amsterdam-based company.