Signify, the world’s largest lighting company, recently suspended its 2020 financial outlook and cut 20% wage of its employees in response to the COVID-19 pandemic. On April 22, the company further published a press release explaining its perspective of the crisis. Stephen Rouatt, Signify’s Head of Strategy, Alliances and Market Insights, looks at the economic impact of the coronavirus pandemic

Rouatt said that the impacts on the global economy caused by COVID-19 will likely to continue until 2021 depending on how governments around the world contain the virus.

He considered it one of the biggest hits to the world economy since the Great Depression. For 2020, markets have already seen slowing in Asia in the first quarter, but the second quarter of this year will be even harsher, as COVID-19 is sweeping Europe and the Americas. Decreases in industrial production are expected with jobless claims in the US hitting record highs. The stock markets are also experiencing huge swings.

Signify noted that there are teams evaluating scenarios for where the lighting market could be headed, and which of its segments would be most impacted to understand and mitigate the impact. Based on the evaluation, the company will anticipate long-term outcomes and provide guidance to the markets on how to respond.

The measures taken in Signify include withdrawing 2019 dividend proposal, significantly curtailing indirect material spend, and instituting an external hiring freeze, among other measures designed to increase its resilience in the face of mass uncertainty. The company is also searching for government support across its markets. In addition, Signify have requested its employees to adopt voluntary work time reductions and ask them to sacrifice their wage during the 2Q20.