Philips has announced the unexpected departure of its CEO Frans Van Houten in October after 12 years at the firm.
The Dutch health tech firm revealed that Houten will be replaced with Roy Jakobs, the current head of the company’s Connected Care businesses.
“The supervisory board and current Philips CEO Frans van Houten have agreed that with the end of his third term in sight, the time is right for the change in leadership,” Philips said in a statement.
A general meeting of shareholders will be held on September 30 to appoint Jakobs to the top spot.
Shares in the Philips have plunged over 40 per cent in the year to date as it grapples with supply chain woes and mass recalls of products.
5.5 million ventilators used for the treatment of sleep apnea were recalled last year.
The company said the recall and repairs had cost it €900m so far.