Philips

Philips transforms through controlled autophagy. The Dutch health technology company generates €18 billion in annual revenue by systematically digesting obsolete divisions and reallocating resources to profitable segments. After shedding consumer electronics, lighting, and home appliances over 15 years, Philips focuses exclusively on medical technology—diagnostic imaging, patient monitoring, sleep and respiratory care.

This transformation faces harsh selection pressure. A 2021 recall of 5.5 million sleep apnea devices triggered €1.1 billion in settlements, FDA restrictions banning U.S. sales, and permanent loss of respiratory market share. Yet Philips demonstrates regenerative capacity: 2024 operating margins improved to 11.5%, free cash flow reached €906 million, and the company projects €2.5 billion in productivity savings through 2025 while maintaining R&D investment at 7% of revenue across 42,000 employees.

The lesson mirrors salamander regeneration: successful tissue replacement requires simultaneous resource reallocation and cell specialization. Philips sheds legacy businesses not through crisis, but through planned autophagy—continuously converting old structures into fuel for new growth.