Signify Announces Further Job Cuts Amid Challenging Market Conditions
The lighting giant Signify has confirmed a new round of cost-cutting measures that will result in approximately 900 positions being eliminated globally. Chief Executive Eric Rondolat (referred to in local reports as part of the leadership team’s strategic outlook) addressed the decision during the presentation of the company’s annual financial results, citing persistent macroeconomic headwinds.
The Eindhoven-based firm, which remains the primary manufacturer of Philips-branded lighting products, stated that the current reduction in force will impact roles across all departments. According to a company spokesperson, the reduction will be managed through a combination of natural attrition, a freeze on vacant positions, and compulsory redundancies. These measures are projected to generate an annual cost saving of €180 million.
As of late last year, Signify employed over 28,000 people. This latest move follows a period of significant restructuring as the company continues to navigate a shifting global landscape.
Strategic Review and Product Portfolio
In what is described as a transitional year for the company, the leadership emphasized that the immediate priority is to bolster performance through operational excellence and improved cost efficiency. To this end, Signify is conducting a comprehensive review of its broader strategy and product portfolio. The conclusions of this assessment are expected to be presented to shareholders during an investor day scheduled for June.
Impact of Import Tariffs and Market Volatility
The manufacturer has faced a decline in demand exacerbated by the imposition of US import tariffs. Financial reports reveal that revenue in the final quarter of the previous year fell by 10 per cent to €1.5 billion. Net profit for the same period was nearly halved, dropping to €60 million from €119 million in the previous year.
The performance across different divisions showed notable regional disparities. While the professional lighting segment—which covers office and street lighting—saw growth in the United States, results in Europe deteriorated. Conversely, the consumer lighting sector experienced growth in most markets, with the notable exception of China.
Given the ongoing volatility, Signify has expressed caution regarding the outlook for the coming year. Consequently, the company has refrained from issuing a formal revenue forecast for 2026 at this stage.
@ANP | NEWS BRAINPORT | SIGNIFY
