Breitling Cuts Jobs as Swiss Franc and Luxury Slump Hit Results
(Bloomberg) — Breitling AG is laying off dozens of employees as the Swiss watchmaker, whose models include the pilot-focused Navitimer, grapples with softening luxury demand and higher costs.
The business, owned by private equity firms Partners Group and CVC Capital Partners, has cut more than 50 positions across its headquarters and subsidiaries globally this year, according to people familiar with the matter, who asked not to be identified discussing staffing matters. The layoffs, including in HR, marketing and sustainability, are part of a push to cut costs as Chief Executive Officer Georges Kern looks to revive the business.
The strength of the Swiss franc and headwinds from US tariffs is adding to the challenges posed by the wider economic backdrop, which are crimping demand in some markets.
The company reported adjusted earnings before interest, taxes, depreciation and amortization of 162 million Swiss francs ($208 million) for the 12 months ending March 31, a 21% slump versus the previous year, people familiar with the matter said. Net sales slid 11% to 769 million francs, they added. Octus earlier reported some details of the earnings.
Much of the drop reflects a hit from exchange rates, one of the people said. The Swiss franc was one of the top performing major currencies in the fiscal year, gaining over 10% against the dollar. The US is the company’s largest market. Breitling is also now being affected by the war in the Middle East, which has cast a shadow over one of the few regions of growth for luxury watches.
Breitling and a representative for Partners Group declined to comment. A spokesperson for CVC didn’t respond to a request for comment.
Under Kern, who has led the company since 2017, Breitling has added two brands to its core offering. In 2023 it acquired high-end marque Universal Genève, followed in 2025 by entry-level brand Gallet that is being launched this year.
Still, the cost of the strategy added to concerns about softer consumer demand with S&P Global Ratings lowering its credit score by one notch to B- in July. That reflects a company being “more vulnerable” to adverse conditions, but having the capacity to meet financial commitments.
The company’s largest shareholder, Partners Group, is already under the spotlight. Short-seller Grizzly Research published a report at the end of April alleging asset over-valuation across Partners Group’s portfolio. The alternative asset manager said that the report is “frivolous, defamatory and highly misleading” and that it was weighing legal action.
Breitling, a sponsor of sports such as the US’s National Football League and Formula One team Aston Martin, entered private equity ownership in 2017. Partners Group holds a 51% stake and co-founder Alfred Gantner chairs Breitling. The Financial Times reported in February that Partners and CVC had marked down their stakes in the watch firm.
–With assistance from Chris Miller.
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