Signify announces new customer-centric organization and structural cost reductions

Press Release

December 1, 2023 

Signify announces new customer-centric organization and structural cost reductions

• New operating model includes four verticalized businesses to enhance customer-centricity and speed of execution
• Structural measures to reduce non-manufacturing costs, generating expected annualized savings in excess of €200m
• Changes to be implemented through 2024 

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, announces it is adapting its organization to enhance customer-centricity, speed of execution and reduce its structural costs. 

"After the major transformation we achieved through the past decade, we are taking the next step by organizing our company around four vertically integrated businesses. Three of these will focus on customers: Professional, OEM and Consumer. The fourth will be dedicated to conventional lighting technologies.

Aligned to the new customer-centric structure, we will 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. Already started in Q4 2023, these changes will be implemented through 2024, with the majority achieved by Q2, and generating expected annualized savings in excess of €200 million.  

Together, these measures will increase focus and accelerate the execution of our strategy, supporting our continued leadership in the transition to energy efficient connected lighting to?unlock?the extraordinary?potential?of?light?for brighter lives and a better world.”?    
  
Eric Rondolat 
CEO of Signify 

Moving forward, Signify will report against four businesses with vertically integrated P&Ls, adapted from the current three divisions as follows: 

• The Professional business will offer LED lamps, luminaires, connected lighting systems and services to customers in the professional segment.
• The Consumer business will offer LED lamps, luminaires, and connected products, including Philips Hue and WiZ, to customers in the consumer segment.
• The OEM business will offer lighting components to the industry.
• The Conventional business will offer special lighting, digital projection, and lamp electronics.

The changes will be implemented through 2024, with the majority achieved by Q2, and are subject to proceedings with Signify’s social partners, depending on local legislation.  

In the course of Q1 2024, Signify will make comparable financials available for the fiscal year 2023 under the new organizational structure and provide more information on one-off restructuring costs.

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For further information, please contact:? 
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Corporate Communications 
Tom Lodge 
Tel:??+31 6 5252 5416 
E-mail: tom.lodge@signify.com   
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Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131
E-mail: thelke.gerdes@signify.com  

About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2022, we had sales of EUR 7.5 billion, approximately 35,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in our operations in 2020, have been in the Dow Jones Sustainability World Index since our IPO for six consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page. 

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• Signify press release