Employees who temporarily started working 20% less at lighting manufacturer Signify last year because of the coronacrisis will still be paid the wages they voluntarily surrendered. The withdrawn dividend of €1.35 per share for shareholders will also be paid out.
Despite the pandemic, the results over the past year were so strong that employees and shareholders could still be rewarded.
The company also announced to repay another €350 million in debt due to its “robust financial performance” for 2020, with a higher than expected margin and less revenue loss than budgeted.
The companys supervisory and senior directors, who temporarily paid one-fifth of their wages last year, without working fewer hours, are not paid out their lost income. Those who own shares in their own company saw their interest become worth more than 2% on Wednesday morning.
Although 2020 was less bad than expected, Signify does not escape interventions due to the coronacrisis. As a result of the pandemic, the market serving the former Philips Lighting has fallen from €70 billion to €60 billion and will be wasted for years before it returns to its 2019 level. Therefore, the company has announced that it will cut functions in the central organization, which should cost an unknown number of jobs.