Expanding on their decision to merge their Automotive and LumiLeds divisions, they are now creating a separate lighting company as well as merging their consumer and healthcare divisions to make another separate company. Both ‘new’ companies called Lighting and HealthTech will still be part of the Philips brand.
The company have decided to create the separate lighting division as they feel it will help the business to expand and is better suited to the current lighting market.
CEO of Philips, Frans Van Houten, said: “I do appreciate the magnitude of the decision we are taking, but the time is right to take the next strategic step for Philips, as we continue on our transformation. Giving independence to our lighting solutions business will better enable it to expand its global leadership position and venture into adjacent market opportunities.”