Signify, the company behind the Philips Hue smart lighting brand, has announced plans to restructure its operations amid “ongoing market volatility and uncertainty.” As part of this restructuring, the company says it will enact a “new customer-centric structure” with plans to save around $218 million.
The news was announced by Signify via its website earlier this month. Signify confirmed to The Verge this week, however, that “job losses are coming” as part of this restructuring. Eric Rondolat, CEO of Signify, said that the “changes have already begun and are expected to be complete by the first half of 2024.”
As part of this broader reorganization, Signify says that it will break things down into four different businesses:
- 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, conventional lamps, and lamp electronics.
While the structure is still relatively broad across those four categories, Signify’s press release seems to suggest its primary focus will be on that consumer business – including Philips Hue and WiZ.
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.
Philips Hue has been one of the longest-running supporters of Apple’s HomeKit platform. The company has also made it clear it plans to be a staunch supporter of the Matter smart home standard going into the future as well.
More details are available on the Signify website.
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