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Swiss watch brand Zenith could cut up to 200 jobs

Zenith set to make redundancies; some say 200 jobs are at risk
Zenith set to make redundancies; some say 200 jobs are at risk Keystone-SDA

Zenith, a watch brand based in Le Locle and owned by the French luxury giant LVMH, has launched a consultation process with its staff in view of a possible mass layoff.

A company spokesperson confirmed the news published in the Le Temps newspaper, stating that no further information would be provided at this stage. However, other sources within the company have spoken to the AWP news agency, mentioning that around a hundred jobs are at risk in Le Locle – out of a total of approximately 200 – and another hundred abroad, within the distribution network.

According to these sources, Zenith intends to focus more heavily on ultra-luxury watchmaking. The reorganisation is reportedly driven by the need to align production volumes with actual demand: following the post-pandemic recovery, the brand is said to have recorded losses year on year, despite the strong performance of certain collections. The difficulties encountered include the strong Swiss franc, US tariffs and international geopolitical tensions. Added to these factors are structural problems: the scale of the industrial and commercial operations is reportedly excessive in relation to current needs.

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Zenith’s financial situation had fuelled rumours last January that LVMH might sell the brand – rumours which were firmly denied by the French group. The source cited by AWP has also ruled out the existence of any plans for a sale.

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Translated from Italian, reviewed by an English Department journalist. 

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