Signify has announced a reorganization expected to generate annualized savings in excess of 200 million euros. The new operating model includes four verticalized businesses to “enhance customer centricity and speed of execution.” Structural measures to decrease non-manufacturing costs will reduce the lighting specialist’s current global headcount of 35,000 by thousands. In the Netherlands, unions are fearing the loss of 300 jobs. Already started in Q4 2023, the changes will be implemented through 2024, with the majority achieved by Q2.
Signify is restructuring its current three divisions into four businesses with vertically integrated profit and loss reporting. The new Professional business will offer LED lamps, luminaires, connected lighting systems and services to professional customers. The Consumer business will offer LED lamps, luminaires and connected products, including Philips Hue and Wiz, to consumers. The OEM business will offer lighting components to the industry. The Conventional business will offer special lighting, digital projection, conventional lamps and lamp electronics.
“After the major transformation we achieved through the past decade, we’re taking the next step by organizing our company around four vertically integrated businesses,” comments Signify CEO Eric Rondolat. “Aligned to the new customer-centric structure, we’ll further adjust the size of our central organization and reduce our costs to support the company’s performance in the face of ongoing market volatility and uncertainty.”