January 27, 2025   

In His Words: Eric Rondolat on Stepping Down as Signify CEO

Above: Eric Rondolat is interviewed on CNBC the same day his departure from Signify was announced
Image: YouTube Thumbnail from CNBC International

Outgoing leader tells CNBC International why now is the right time for change​

 

On Friday it was announced that Eric Rondolat, CEO of Signify, would soon depart after leading the company for 13 years, including its transformation from Philips Lighting into Signify. Under his leadership, Signify established its position as the world's largest lighting company, solidifying its presence in the industry following the spin-off. Despite recent declines in revenues, profits, and stock value, Rondolat maintained an optimistic tone during his CNBC International interview, reflecting on his tenure and sharing his thoughts on the company's future.

Rondolat has pledged to support a smooth transition as the company searches for his successor. The announcement comes just eight months after the company extended his contract for another four years, making the decision unexpected. According to the terms of his contract, Rondolat is entitled to a €985,223 severance payment if the company initiated the termination. However, if the departure was voluntary, no severance would apply. The decision also comes against a backdrop of financial challenges, with Signify's revenue declining 18% over the past two years and its stock dropping 25% in 2024 alone.

 

Transition and Leadership Change

Rondolat emphasized the importance of leadership change for growth, stating it was the "right time" to step down after successfully guiding the company through a major restructuring in 2024, which saved €200 million. He expressed confidence in the company's strong position heading into 2025 and shared that the board is considering both internal and external candidates for his replacement, with a decision expected by April.

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2024 Restructuring and Financial Performance

Signify faced challenges from its declining conventional lighting business, which impacted top-line growth by 240 basis points and profitability by 40 basis points. Despite this, strong performance in its consumer and connected lighting divisions stabilized margins at just under 10%. The company headcount dropped by nearly 2,500 full time employees in 2024.

 

Challenges in the Chinese Market

Rondolat highlighted China's slow economic recovery, noting that consumer spending remained low despite high savings. The professional lighting segment in China was further affected by issues in the real estate and non-residential construction sectors.

 

European Market Dynamics

Signify experienced mixed results in Europe, with weak performance in Germany, the UK, and Eastern Europe, but stronger growth in Northern Europe. Rondolat clarified that these challenges are market-wide and not long-standing issues specific to Signify.

The CNBC International interview shows an optimistic Rondolat painting a positive picture about Signify's readiness for future growth under new leadership.

 

 

 




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