Signify Cuts 900 Jobs Worldwide as Stock Hits Record Low

The world's largest lighting company is dimming its workforce.

Signify, the Dutch company behind Philips lighting products, announced on January 30, 2026 that it will cut 900 jobs globally as part of a €180 million cost-cutting program. The announcement accompanied full-year 2025 results that missed market expectations, sending shares plunging 15% — the company's worst trading day since its 2016 initial public offering.

"Through what will be a transitional year for Signify, our immediate priority is to outperform in a tough market by strengthening our commercial and operational excellence, and cost competitiveness," said CEO As Tempelman, who took the helm in September 2025. "To drive this, we are announcing a €180 million program to structurally reset our cost base, which will unfortunately impact 900 roles across Signify."

Tempelman did not sugarcoat the employment impact. In an interview with Reuters, he acknowledged that the company could not "exclude the possibility that there will indeed be some forced cuts as well." The reductions will be implemented through a combination of natural attrition, unfilled vacancies, and involuntary layoffs.

How Many Employees Has Signify Cut?

The 900-job announcement is the latest in a sustained workforce reduction that has shrunk Signify significantly over the past two years.

According to company filings, Signify's headcount trajectory tells a stark story:

• End of 2023: 31,920 employees
• End of 2024: 29,459 employees (down 2,461)
• End of Q3 2025: 28,064 employees (down 1,395)
• End of 2025: 26,629 employees (per NL Times)

That's a total reduction of 5,291 employees — or 17% of the workforce — in approximately two years, even before the latest 900-job cut takes effect.

In 2024 alone, Signify cut 1,000 jobs, with then-CEO Eric Rondolat stating nearly half the positions were in the Netherlands. The company attributed those reductions to its 2023 reorganization program and lower factory staffing requirements as production volumes declined.

Why Is Signify Cutting Jobs Now?

Multiple factors have converged to pressure the lighting giant:

Disappointing financial performance: Full-year 2025 sales reached €5.77 billion, below analyst consensus of €5.81 billion. Comparable sales growth was negative 3.4% for the year. Q4 was even weaker at negative 5.2%. Adjusted EBITA margin fell to 8.9% from 9.9% in 2024. Net income dropped to €259 million from €334 million the prior year.

US market deterioration: The United States represents roughly one-third of Signify's global revenue and has been a central investor concern since October, when the company issued a profit warning. Steep declines in demand from commercial and public sector clients — driven by tighter government spending — hit the Professional lighting business hard. While Q4 showed some stabilization as private sector activity picked up, particularly in healthcare projects, uncertainty remains.

European weakness: Professional lighting projects declined across major European markets including Germany, France, and the Benelux countries. Public infrastructure spending remained weak throughout 2025.

Chinese overcapacity: Tempelman highlighted that Chinese manufacturers facing US tariffs are redirecting excess capacity to Europe and other markets, creating "additional price pressure, especially in the Professional trade channels."

Consumer segment struggles: While Consumer lighting grew in most regions, China remained a drag. The segment's contribution to margins weakened in Q4.

What's the 2026 Outlook?

The company's guidance disappointed investors as much as the results themselves.

Signify expects an adjusted EBITA margin of 7.5% to 8.5% for 2026 — the lowest level since its 2016 IPO and roughly 150 basis points below market expectations, according to ING analysts. The company declined to provide sales guidance, citing "diverging dynamics in its end markets."

"Signify anticipates the challenging conditions to persist through 2026," the company stated in its earnings release.

CEO Tempelman described 2026 as a "transitional year" while the company conducts a comprehensive review of its strategy and portfolio. Conclusions will be shared at a Capital Markets Day event scheduled for June 23, 2026. The company is also pausing share repurchases during the review period "to shore up cash."

Despite the challenges, Signify highlighted some bright spots: connected lighting showed "strong growth" in both Professional and Consumer markets. The company surpassed its sustainability targets, reducing greenhouse gas emissions by 40% against its 2019 baseline — double the pace required by the Paris Agreement. Circular revenues reached 37% of sales, exceeding the target of 32%.

The company also proposed a cash dividend of €1.57 per share for 2025, slightly higher than the €1.56 paid for 2024 — a signal of confidence in cash generation despite operational challenges. Free cash flow reached €440 million for the year, roughly flat versus 2024.

How Did the Market React?

Badly.

Signify's Amsterdam-listed shares fell approximately 15% on January 30, dropping to the bottom of Europe's benchmark Stoxx 600 index. It marked the company's worst single-day decline since the 2016 IPO.

Analysts criticized the margin guidance as especially disappointing given the €180 million in announced cost savings. ING analysts noted the margin forecast "falls roughly 150 basis points below market expectations."

Morgan Stanley subsequently downgraded Signify from Equalweight to Underweight, reducing its price target.

How Does This Compare to Industry Trends?

Signify isn't alone in its struggles. The global lighting industry faces structural headwinds that have prompted restructuring across major players.

Acuity Brands, the largest US-based lighting manufacturer, implemented layoffs during LightFair 2025 that affected key leaders. CEO Neil Ashe acknowledged the company "eliminated a chunk of employees" to reduce costs, while characterizing the 2026 lighting market outlook as "flat to down." Acuity's lighting division saw adjusted operating margins rise to 18.3% for fiscal 2025, but only through aggressive cost restructuring and productivity initiatives.

The broader LED lighting market remains on a long-term growth trajectory — projected to reach $285 billion by 2035 at an 11.12% CAGR — but that growth is heavily concentrated in Asia Pacific. The region holds 44% market share, while European and North American manufacturers face margin pressure from lower-cost Asian competitors.

US tariffs on Chinese lighting products, rather than protecting domestic and European manufacturers, have redirected Chinese overcapacity to other markets, intensifying global price competition. As Tempelman noted in his first remarks to investors, "We see ripple effects of tariffs as Chinese overcapacity is redirected from the US to Europe and other regions... creating additional price pressure."

The professional lighting segment — which includes commercial offices, street lighting, and industrial applications — faces particular challenges as corporate real estate demand softens and government infrastructure spending remains constrained. Consumer smart lighting, where Signify's Philips Hue brand competes, has shown more resilience but cannot offset weakness in the core business.

Private equity activity in the lighting sector has also shifted, with 2025 seeing more selloffs and shutdowns than new acquisitions, reflecting investor concerns about near-term profitability.

Which Regions Will Be Most Affected?

Signify has not specified which locations will bear the brunt of the 900-job reduction.

However, historical patterns provide some indication. The company's 2024 restructuring saw nearly half the job cuts in the Netherlands, where Signify is headquartered in Eindhoven. The company operates in 74 countries and previously employed over 28,000 people globally.

A company spokesperson told NL Times that "the workforce reduction plan could affect all types of positions within the company."

Given the stated focus on US market challenges and European Professional lighting weakness, regions with exposure to commercial, public infrastructure, and office lighting segments may face disproportionate impact.

What Does This Mean for Signify's Leadership?

The job cuts come amid significant leadership transition.

Signify saw three different CEOs lead the company in 2025:

• Longtime chief Eric Rondolat exited in April
• CFO Željko Kosanović served as interim CEO from May through August
• As Tempelman became permanent CEO in September

Unlike his predecessors — both with Schneider Electric backgrounds — Tempelman comes from the energy and utility sectors rather than electrical manufacturing. Some analysts view this as a signal of broader strategic rethinking ahead.

Tempelman has signaled that "major changes" will follow the strategic review. In the earnings call, he noted: "We can and should be clearer about strategy... and we are reviewing our OEM business to understand its role in our broader offering."

What Should Affected Workers Know?

Workers facing potential redundancy should consider several factors:

Severance and transition support: Signify has not publicly detailed severance terms for the current round of cuts. However, EU employment law and Dutch labor regulations typically provide substantial protections, including consultation requirements with works councils and potentially extended notice periods.

Timeline: The €180 million cost reduction program will deliver "the majority of savings" through 2026, with full benefits realized in 2027. This suggests job cuts will be phased over the coming months.

Skills transferability: Connected lighting and IoT-enabled systems — areas where Signify showed growth — require skills that transfer well to building automation, smart home technology, and industrial IoT sectors.

Industry alternatives: Despite near-term challenges, the LED lighting market continues growing globally. Competitors including Acuity Brands, Osram, Cree Lighting, and regional manufacturers continue hiring for specialized roles, particularly in smart lighting and controls.

People Also Asked

Q: Is Signify the same as Philips Lighting?A: Yes. Signify was spun off from Dutch tech giant Philips in 2016 and changed its corporate name from Philips Lighting to Signify in 2018. The company continues to sell products under the Philips brand through a licensing agreement, along with other brands like Philips Hue smart lighting and Interact connected systems.

Q: How many jobs has Signify cut in total?A: Including the newly announced 900-job reduction, Signify will have cut approximately 6,200 positions since the end of 2023 — when the company employed 31,920 people. The remaining workforce stands at approximately 26,629 employees as of December 2025.

Q: Will Signify still exist after the restructuring?A: Yes. Signify remains the world's largest lighting company by market share. The restructuring aims to improve profitability and competitiveness, not wind down operations. The company continues to invest in connected lighting, LED technology, and sustainability initiatives while managing costs in traditional segments.

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