By Olivier Cherfan and Stephanie Hamel
(Reuters) -Netherlands-based Signify, the world's biggest maker of lights, on Friday said it would lay off 1,000 employees in 2024 as part of its efforts to slash costs.
Signify, spun off from Philips (LON:0LNG) in 2016, in December unveiled a cost-cutting plan to save 200 million euros ($216.5 million) annually. It did not at the time specify how many jobs it would cut.
The layoffs will take place across 30 countries in 2024, with less than half of them in the Netherlands, CEO Eric Rondolat said in a press call. Signify had a headcount of about 32,000 at the end of last year.
Its net income was hit by higher restructuring costs in the fourth quarter, falling to 59 million euros, well below the 104 million expected by analysts in a company-provided poll.
The shares fell more than 6% in early trading.
"We will continue to protect our gross margin and enhance our focus on costs," Rondolat said in a press release.
Signify aims to improve its adjusted core profit (EBITA) margin by up to 50 basis points in 2024.
Adjusted EBITA reached 209 million euros in the fourth quarter, corresponding to a margin of 12.1%. This compared to an analysts' forecast of 11.7%.
"While we continued to face adverse market conditions in some geographies and in the consumer and OEM segments, we have gained share with our professional connected systems," Rondolat said in the statement.
Signify provides a wide range of lighting systems from conventional home lamps for consumers to LED lighting for professionals.
The infrastructure market showed a "good level of traction", while lighting systems for retail, hospitality and offices saw a strong slowdown due to delayed investments, Rondolat told reporters.
He added the Red Sea shipping disruptions meant delivery times were 12 days longer and container costs slightly higher when shipping products from China to the Middle East and Europe.
"At this point it is under control and not significant in the impact on our working capital or costs," Rondolat said.
($1 = 0.9237 euros)