Zenith Restructuring: Major Job Cuts and Shift to High-End Market
Zenith, the historic Swiss watchmaker owned by LVMH, is undertaking a major restructuring that will cut up to half of its workforce at the Le Locle manufacture and scale back production of its mid‑tier models. The plan, announced by CEO Benoît De Clerck, targets the elimination of around 100 jobs initially, with a further 100 positions expected to be removed as the brand shifts toward haute‑horology, low‑volume timepieces. Management has begun a three‑week consultation process with employees and the Unia union, aiming to complete the reorganization and reposition the brand by 2029. The restructuring responds to years of financial losses driven by a strong Swiss franc, U.S. tariffs, and weakening demand in key markets such as China and the Middle East. While Zenith will continue supplying its renowned El Primero movement to other LVMH brands, it plans to discontinue many core collections, including the Chronomaster, Defy, and Pilot lines, and focus on high‑end product lines like the GFJ series. The company’s extensive after‑sales service and component stock will remain operational, but the overall strategy is to reduce excess capacity and reposition Zenith at the top end of the luxury watch market.
Buying Time Analysis: The story highlights Zenith’s critical restructuring, which threatens up to half its workforce and signals a strategic shift toward high‑end, low‑volume watchmaking, underscoring broader challenges and transformations within the Swiss watch industry.
