Signify Announces Major Job Cuts

This article was last updated on January 26, 2024

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Job Cuts Across Dutch Locations in Signify

Signify, previously recognized as Philips’ lighting division, has announced the elimination of nearly 1,000 positions in 2022, with almost 50% of these cuts affecting employees in the Netherlands. In light of challenging market conditions, Signify is opting for this restructuring strategy, which will significantly impact both the national and international workforce. Regrettably, as many as 500 jobs in the Netherlands might be affected, although Signify has not released the exact figure. Of the total jobs to be eliminated in the year, over 500 positions are spread across Signify’s various locations in the remaining 29 countries of operation. Although the company initially announced the restructuring in December, only recently did CEO Eric Rondolat disclose the specific scope during the company’s quarterly and annual earnings report. In the Netherlands, Signify mainly operates in the sectors of office staffing, research, and distribution. Although the final production site is scheduled for closure within the year, the company aims to retain its savings of around €200 million through workforce reductions and related measures. Non-manufacturing related expenses, including those pertaining to the Dutch office, are their primary focus during this financial overhaul.

Unions Express Shock and Concern

In response to this news, worker unions have expressed shock and disappointment. Union representatives claim that they were not consulted before the announcement, leaving many employees in a state of uncertainty and fear. Currently, Signify employs around 2,000 personnel in the Netherlands. The planned cuts suggest a 25% reduction of local jobs. Union representatives are now questioning the company’s future plans and vision, especially considering the abrupt and significant reduction in workforce. They are also challenging whether management’s lack of vision or poor financial performance is leading to unnecessarily drastic measures, particularly in regards to the anticipated job cuts. Suat Koetloe from De Unie union referred to the sudden cuts as a “significant blow to the staff’s confidence,” adding, “People panic. They think: this is not going well.” Employees unaffected by these cuts are also left unsure about their job security, presumably causing decreased morale across the company.

Weakening Demand for Lamps Spurring Job Cuts

Signify’s decision comes on the back of decreased turnover and net profit in the last part of 2023, primarily driven by weakening market conditions in China. The lamp manufacturer believes a recovery in this market is unlikely in the foreseeable future. Further driving the decision are the shrinking demand for lamps and the transition towards more durable LED lamps, reducing the need for frequent replacements. Additionally, the slowing down of the real estate market, leading to fewer constructions, has reduced the overall demand for lamps. Signify is not new to such major restructuring; the company slashed 2,700 positions in 2021, primarily affecting factory personnel due to reduced production. These previous cuts reduced the company’s global workforce from around 35,000 at the end of 2022 to the current 32,000.