Phillips has announced that its current Chief Executive Officer [CEO] Frans van Houten will leave the company in October. The move to parkways with the CEO comes after a key product recall cut its market value by more than half over the past year.
The company said Van Houten would be replaced on Oct. 15 by Roy Jakobs, head of the company’s Connected Care businesses. Van Houten’s third term as CEO had been due to end in April.
Jakobs, 48, is currently overseeing the company’s recall of millions of ventilators and machines for the treatment of sleep apnea. That process has lopped almost $30 billion off Philips’ value as investors fear large claims.
“The time is right for the change in leadership,” Philips said in a statement.
During his almost 12 years at the helm, 62-year old Van Houten oversaw the disposal of Philips’ lighting and consumer electronics divisions.
Philips now focuses on medical imaging, monitoring and diagnostic equipment and competes against General Electric and Siemens Healthineers.
