Mr Frans van Houten, CEO, Royal Philips
This dramatic split of Netherland-based Philips into two separate entities - HealthTech-Lifestyle business and Lighting business is expected to allow the company to focus more into healthcare and consumer goods.
"To become the global leader in HealthTech and shape the future of the industry, we will combine our vibrant healthcare and consumer lifestyle businesses into one company," said Mr Frans van Houten, CEO, Royal Philips.
The new operating structure will help the company save €100 million in 2015, and about €200 million in 2016.
Philips said that both the companies will continue to use the same brand name and will be based in the Netherlands.
The company, however, said that it would be difficult to comment on anything further now, especially queries related to the number of job cuts as a result of this mammoth decision. Globally, Philips employs 112,000 professionals.