ROY JAKOBS

Jakobs took the helm of Philips in 2022, amid perhaps the greatest crisis in its history. He is now steering the century-old Dutch company's recovery with a sharp focus on innovation.

- By Aslesha Mehta & Alex Wood Morton

FOUNDED IN 1891 as a light bulb manufacturer, Philips has transformed itself into a health-tech leader in the 21st century. Its early work in lighting laid the foundation for the development of X-ray tubes, which became the cornerstone of its health care business.

The 134-year-old technology company faced perhaps the most significant crisis in its history following the 2021 U.S. recall of Philips breathing devices, including CPAP and BiPAP machines, owing to potential health risks. Roy Jakobs, who joined Philips in 2010, became CEO of the Dutch company in 2022, around the time of the crisis. Since then, he has helped bring the company into stabilization. While annual revenue has remained steady—reaching $19.5 billion in 2024—the company's share price has risen a total of 81% since Jakobs took over. Though today the company's share price remains below its 25-year average, Jakobs is committed to driving a long-term turnaround.

Alongside the recall, one of Jakobs's first major actions as CEO was announcing a restructuring plan that cut 10,000 jobs—around 13% of the workforce—a move aimed at helping the company absorb settlement payouts.

Rising patient expectations—along with technologies like remote robotics, digital health platforms, and AI-driven machine learning—are rapidly transforming health care. In response, Jakobs is driving continuous innovation at Philips by enhancing hospital patient monitoring through IntelliVue bedside, wearable, and transport monitors—seamlessly integrated with the Philips Patient Information Center iX for real-time data access—and advancing Azurion image-guided therapy platforms to support minimally invasive procedures.

“Explaining the why is very important,” he says. “It’s not about where you do innovation. It’s about the impact.” He emphasizes how crucial it is for companies to stay relevant in an ever-changing market, and to do so honestly and with integrity.