Philips told the Ohio Department of Job and Family Services in an April 27 letter that it plans to permanently lay off 79 employees who work at its facility on Miner Road in Highland Heights near Cleveland, according to the article. It quotes a Philips spokesperson as saying that, ultimately, about 382 of the vendor's 850 employees in the Cleveland area will be laid off in the coming months as the facility ceases manufacturing.
In the February announcement, Philips said it was halting manufacturing of nuclear medicine and CT scanners at the Miner Road plant in favor of facilities in Israel and China. Philips said it plans to create an R&D and training facility in the Cleveland area instead.
Philips acquired the Miner Road facility in 2001 when it bought Marconi Medical Systems (long known as Picker International). But the plant has been the scene of ongoing oversight by the U.S. Food and Drug Administration (FDA) regarding complaint handling.
The company shut down manufacturing of CT scanners at the plant in 2015 and recalled six models of CT scanners in July of that year. In March 2018, the FDA released a report that outlined the results of its inspection efforts at the facility, which concluded that the plant was "not adequately investigating complaints about its products." Philips said it has had a "constructive meeting" with the FDA regarding its inquiry.
Philips estimated that approximately 380 employees will remain in the Cleveland area, with a focus on service and training.
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