Lights maker Signify launches business review, cost-cutting drive affecting 900 jobs

(Updates with detail on jobs in paragraph 1, CEO comments and context on job cuts and market performance in paragraphs 2, 5-7) Signify’s 180-million-euro cost-cutting plan to affect 900 jobs worldwide Private projects help US recovery after weaker Q3 sales Signify to undergo strategic, portfolio review By Leo Marchandon Jan 30 (Reuters) - Signify (LIGHT.AS) announced a 180-million-euro ($214.5 million) cost-cutting drive, affecting 900 jobs worldwide, and a broad strategic review under its new chief executive, after the world’s biggest lights maker reported weaker-than-expected annual results on Friday. “I don’t want to exclude the possibility that there will indeed be some forced cuts as well,” CEO As Templeman said in an interview with Reuters. Templeman, who took the helm in September, signalled major changes ahead, describing 2026 as a transitional year while the company conducts a comprehensive review of its strategy and portfolio. Signify will share conclusions at its Capital Markets Day event in June. The company is pausing share repurchases during the review period to shore up cash, with cost cuts set to protect margins, it said. A sharp deterioration in Signify’s U.S. business has been a central concern for investors since October, when the company slashed its full-year guidance citing a steeper-than-expected drop in demand from commercial and public sector clients amid tighter government spending. But the U.S. business stabilised in the fourth quarter as private sector activity picked up. Templeman told Reuters that recovery was seen across multiple segments, most notably in healthcare projects. In Europe, public infrastructure projects remained weak in major markets including Germany, France and the Benelux countries. Templeman said the European Union’s planned infrastructure investments could eventually translate into new projects, but the timing remains unclear. The Dutch group reported annual sales of 5.77 billion euros, missing analysts’ consensus of 5.81 billion euros. Adjusted earnings before interest, taxes and amortisation (EBITA) were 511 million euros, 30 million euros below analyst expectations, according to a poll distributed by Signify. Signify did not give a sales guidance for 2026, but said challenging market conditions were expected to persist through the year. It projected an adjusted EBITA margin of between 7.5% and 8.5% and free cash flow generation equal to between 6.5% and 7.5% of sales. ($1 = 0.8391 euros)