The Dutch manufacturer of medical devices Philips registered losses of 665 million euros in the first quarter of 2023, compared to the ‘red numbers’ of 151 million recorded in the same period of 2022, the multinational reported.

The multinational assumed restructuring charges of 868 million, compared to 350 million in the first quarter of 2022, with a provision of 575 million in connection with an early resolution of the class action lawsuit linked to the withdrawal of respirators from the market.

Philips, which in January raised the scope of its downsizing plan to 10,000, said it had already reduced its workforce by some 5,400 jobs.

In the first three months of 2023, Philips sales totaled 4,167 million euros, 6.3% more than between January and March 2022, with business growth in Western Europe of 2%, up to 801 million, and of 8% in North America, up to 1,779 million, while in the rest of the geographies sales totaled 416 million, 1% more.

“Resolving the Philips Respironics recall remains our top priority. In the first quarter, we recorded a provision in anticipation of a settlement of the economic loss class action lawsuit in the United States. This is an important step in addressing litigation related to withdrawal,” said Roy Jakobs, CEO of Royal Philips.

Philips Respironics is the subject of an investigation by the US Department of Justice and continues in discussions with the FDA regarding a proposed consent decree.