Philips, the Dutch healthcare giant, is in the midst of a significant transformation. In an exclusive interview with The Verge’s Nilay Patel, CEO Roy Jakobs candidly addressed the company’s ambitious three-year restructuring plan, the difficult decision to lay off 10,000 employees, ongoing FDA litigation, and the future of AI in healthcare.

Jakobs acknowledged the challenges facing Philips, citing the recent recall of respiratory devices and ongoing legal battles with the FDA. He explained that the restructuring plan, aiming for a more agile and focused organization, is crucial for navigating these complex issues.

The decision to cut 10,000 jobs, while necessary for streamlining operations, was not taken lightly. Jakobs emphasized the importance of supporting affected employees through the transition.

Looking ahead, Jakobs highlighted the potential of AI in healthcare, a crucial area of focus for Philips. He believes AI can significantly improve patient care, but acknowledges the ethical considerations and need for responsible implementation.

He also addressed the FDA litigation, acknowledging the seriousness of the situation and emphasizing Philips’ commitment to resolving the issues and regaining consumer trust.

The interview paints a picture of a company facing significant challenges but also committed to innovation and a brighter future. While the road ahead may be challenging, Philips’ determination to adapt and embrace new technologies like AI offers a glimpse of a more resilient and forward-thinking healthcare leader.