Dutch health technology company Philips on Monday said it would scrap 6,000 jobs to restore its profitability following a recall of respiratory devices that knocked 70 per cent off of its market value.

The new reorganisation comes on top of a plan announced in October to reduce its workforce by 5 per cent, or 4,000 jobs, as it grapples with fallout from the recall of millions of ventilators used to treat sleep apnoea over worries that foam used in the machines could become toxic.