Tags: Osram | lighting | bulbs | cuts

Osram Cuts 7,800 Jobs As Traditional Bulb Sales Decline Faster

Tuesday, 29 Jul 2014 02:40 PM

Osram AG, the world’s second-biggest lighting company, will cut 7,800 jobs as it seeks to protect its profits against a faster-than-expected decline in sales of traditional bulbs.

The cuts will help Osram save 260 million euros ($349 million) in annual costs by 2017, the Munich-based company said in a statement. The program follows an earlier plan which scrapped 8,700 positions to seek 1.2 billion euros in savings by the end of this year.

“We have always stressed that the transformation of the lighting market will also continue after 2014 and that it will require additional capacity adjustments,” Chief Executive Officer Wolfgang Dehen said. “We need to be even closer to the customer, further strengthen the entrepreneurship of our segments and at the same time create cost structures that are appropriate to the size of the company.”

Osram was spun off last year from Siemens AG, Europe’s largest engineering company, amid a shift in the lighting industry toward light-emitting diodes, which are smaller, more energy-efficient and have longer lifespans than traditional bulbs. Osram, which had 35,108 employees as of Sept. 30, cut its full-year earnings target May 28, saying revenue would remain flat or at best increase moderately.

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Osram AG, the world's second-biggest lighting company, will cut 7,800 jobs as it seeks to protect its profits against a faster-than-expected decline in sales of traditional bulbs.
Osram, lighting, bulbs, cuts
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2014-40-29
Tuesday, 29 Jul 2014 02:40 PM
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