Factory lays off workers amid gloomy manufacturing outlook
Swiss precision machine maker Mikron has laid off 25 workers, citing weak demand for its products from the global car industry. The news reflects pessimistic sentiment from Swiss manufacturers and the wider economy.
Mikron announced on Tuesday that it would have to reduce headcount at a plant in southern Switzerland from its present level of 370. “Management does not anticipate any early recovery in demand from the automotive sector,” the company said in a statementExternal link.
Mikron said the automotive decline will not affect other parts of the group and expects earnings to remain on track to meet targets. The group employs 500 staff in total.
The job cuts reflect export-oriented Switzerland’s reliance on supplying manufacturing output in other countries. Last week, an association of the manufacturing and electrical engineering sectors, Swissmem, painted a gloomy picture for its 1,100 member companies.
“In the first nine months of the year, new orders received declined by 13.2%, turnover by 3.7% and exports by 1.4%,” Swissmem announcedExternal link. While employment levels were not so far affected, Swissmem said that a “significant” number of companies were putting workers on shortened hours.
On Monday, Deloitte released a survey of 103 Swiss chief financial officers across a variety of sectors, which found that “expectations for margins, investments, and staffing levels have all turned negative.” The majority of CFOs surveyed expected a recession in the euro-zone.
Companies are finding themselves caught between the threat of the Swiss franc appreciating and the negative interest rate policy that the central bank has in place to prevent currency inflation.
Swissmem is adamant that the Swiss National Bank should keep ultra-low interest rates in place. But the Deloitte study also points to potential risks arising from this monetary policy.
“The long-term effects on the economy and society of this unprecedented situation are becoming increasingly unpredictable,” stated Michael Grampp, chief economist at Deloitte Switzerland.
More
More
Negative interest rates ‘harm Swiss economy’
This content was published on
Switzerland’s largest bank, UBS, asked 2,500 companies about the impact of negative interest rates. “Nearly two-thirds of respondents said that the cost…for the economy outweighed their benefits overall,” UBS said in a press releaseExternal link on Thursday. The findings heap more pressure on the Swiss National Bank (SNB), which continues to defend its actions. However,…
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
TradeXBank to resume full operations after Sberbank Switzerland taken off sanctions list
This content was published on
TradeXBank, the former Swiss branch of Russia’s Sberbank, will be able to resume its dollar-denominated activities from the second half of this year.
Geneva decides not to remove controversial memorials
This content was published on
The city of Geneva has presented an action plan regarding a series of controversial local statues and monuments of historical figures linked to racism, colonialism or slavery.
University of Lausanne calls for end to pro-Palestine sit-in
This content was published on
The pro-Palestinian occupation continues at the University of Lausanne (UNIL). On Monday evening, a group of students refused to agree to the deadline set by the rectorate.
Ukraine peace conference should include Russia, says Chinese ambassador
This content was published on
China supports a peace conference on the Ukraine war that would see equal participation of all parties, says Chinese Ambassador to Russia Zhang Hanhui.
This content was published on
A majority of Swiss citizens have open attitudes towards various infertility treatments, including even egg donation, which is currently prohibited.
Reports of Swiss cyber fraud almost doubled in six months
This content was published on
The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
‘Much too early’ to lift interest rates, says SNB chairman
This content was published on
“It’s much too early at this moment,” Jordan told CNNMoney SwitzerlandExternal link. “The situation is still quite fragile regarding [currency] exchange rates. This is the reason that we continue our monetary policy of negative interest rates.” Most analysts expect the three-month Libor band to remain unchanged at between -1.25% and -0.25% for at least the…
This content was published on
Growth in the Swiss engineering and metals industries deteriorated significantly in the first half of 2019 and forecasts are equally gloomy.
This content was published on
The American industrial conglomerate General Electric has announced a reduction in the number of planned layoffs at its subsidiaries in Switzerland.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.