Zenith Cuts Jobs to Shift Toward Haute Horlogerie
Zenith’s three‑year turnaround plan aims to reposition the Swiss watchmaker in the ultra‑luxury segment by drastically reducing production volumes and raising prices. The strategy involves cutting roughly half of the 200‑person workforce at its Le Locle site and eliminating about 100 jobs worldwide, while focusing on high‑end “haute horlogerie” pieces that can command prices near CHF 50,000. CEO Benoît de Clerck, who took the helm in 2024, emphasizes that the company must shed excess capacity and shift to a business model that leverages superior engineering and finishing to achieve profitability. The restructuring is supported by LVMH, which will assist displaced staff in finding roles within the group, though opportunities may be limited given broader challenges at TAG Heuer and Hublot. Zenith will continue to produce movements for other brands, maintaining a stream of revenue while the core brand prepares for a relaunch in 2029 with a significantly lower output than the 8,500 watches produced in 2025. The plan is intended to halt ongoing losses and secure the long‑term future of the historic brand.
Buying Time Analysis: The story highlights Zenith's strategic shift to ultra‑luxury watchmaking, underscoring massive job cuts and a three‑year turnaround that will reshape the brand’s future and signal broader industry pressures.
