Signify, the former lighting division of Philips, is cutting a thousand jobs, almost half of which are in the Netherlands. CEO Eric Rondolat said this on Friday in an explanation of the annual figures, according to ANP.
At the end of last year, the lamp maker had almost 32,000 employees worldwide, about 2,000 of whom in the Netherlands. In the Netherlands, office jobs in particular would disappear. A small production factory in Maarheeze is also closing.
Last year, 2,700 jobs disappeared at Signify. The new reorganization, which was announced in December, should result in savings of 200 million euros per year.
According to CEO Rondolat, the cuts are unavoidable. “If you look at our costs as a percentage of turnover, we are at 31 percent at the end of 2023. That is much too high.” Signify’s turnover fell by almost 11 percent last year to 6.7 billion euros.
Container price
The company is affected by inflation and interest rate increases. Fewer offices and homes are being built and renovated than expected. Signify is mainly struggling with disappointing results in China.
The company is also experiencing problems due to rising tensions in the Middle East, where cargo ships in the Red Sea are being attacked by Houthi rebels. CEO Rondolat: “We see an increase in delivery times of up to twelve days because ships have to follow a different route. And the container price has risen.”
Signify previously operated under the name Philips Lighting. The lighting branch went public in 2016. On Friday morning, the share in Amsterdam lost 0.8 percent.