Philips Hue has been focusing on the smart product market and automation since its humble beginnings. As its line of smart lights and systems expanded, it decided to create Signify, a sister company to spearhead the division. Signify has since become associated with everything from automated lamps to track lighting. However, it seems that even the increasing interest in smart home automation isn’t going to be enough to sustain Signify — thePhilips Huemanufacturer is preparing to drastically reduce its budget in the New Year.
As detailed ina press release from Signify, the company is planning to cut its budget in 2024 by about $217 million (viaHueblog). The move will be made in an attempt to restructure and account for market volatility. Company CEO Eric Rondolat cited market volatility as a key reason for the move and indicated that the company’s restructuring process will result in job loss. However, no specific details were given as to how many employees will be impacted by the decision. Rondolat added that the changes actually began in the fourth quarter of 2023, but they are just now being detailed in the public statement — the situation will be ongoing throughout 2024.
As Signify’s priorities shift, it has cited four areas that it intends to focus on in the New Year. These include both professional- and consumer-facing products, conventional products, and original equipment manufacturer business matters. As Hueblog notes, Signify’s decision to remain focused on the “consumer business area” is good news for fans of the smart bulb ecosystem, as the company is clearly still committed to its Philips Hue and WiZ brands. WiZ was originally acquired by Signify, and the name is often used to brand its lineup of lighting products. Functionally, however, Philips Hue and WiZ lights usually work in the same manner.
Both Philips Hue and Signify have been working to enhance the functionality of their products as of late. For example, Philips Hue is supposedly working on developing lighting thatfeatures motion-sensing technology. This would enhance automation for users who are already using such smart home devices. Signify has notably already been exploring such technology, launching a function called SpaceSense for some of its WiZ-branded lights. This allows compatible smart lights to detect movements.
How these changes at Signify will impact what the company launches onto the market in 2024 has yet to be seen. One could argue that the technology Signify has already developed may help it ride out the storm. This doesn’t mean its competitors aren’t taking note, however — and it’s a prime opportunity to gain footing in the exploding smart home industry.
