Signify, the world’s biggest maker of lights, announced a new organisation structure today targeting savings of €200m a year, which sent its shares rising more than 5%.

Signify, spun off from Dutch technology group Philips in 2016, has been cutting costs, including through layoffs, in response to a sluggish recovery in key market China and lower sales volumes.

“New operating model includes four verticalized businesses to enhance customer-centricity and speed of execution,” the group said.

The maker of LED lighting systems and electrical components will organise its structure around four business units, with three focusing on customers while the fourth will be dedicated to conventional lighting technologies.

“Aligned to the new customer-centric structure, we will further adjust the size of our central organization and reduce our costs to support the company’s performance in the face of ongoing market volatility and uncertainty,” CEO Eric Rondolat said in a statement.

Changes will be implemented during 2024, the Dutch group said, adding it expected to complete most of them by the second quarter.

Signify said in October its nominal sales fell 13.8% to €1.65 billion in the third quarter, hit by slow demand across its geographies.