Zenith plans to cut approximately 100 jobs at its Le Locle manufacture, reducing its workforce by half. This move is part of a strategy to transition from the mid-range to haute horlogerie by 2029.
Zenith's Workforce Reduction Strategy
According to Swiss publication Le Temps, Zenith will undergo a significant downsizing, potentially affecting around 100 positions at its Le Locle facility. Additionally, about 100 roles may be cut internationally. This restructuring will also include a reduction of Zenith's international distribution and boutique networks.
Reasons for Financial Challenges
Zenith's financial difficulties stem from several factors: the strong Swiss franc, U.S. customs duties, and downturns in key markets such as the Middle East and Asia. The company's production capabilities have outgrown market demand, contributing to these challenges.
Impact on Zenith's Operations
The job cuts will not affect the service department or the production of mechanical calibres for other LVMH group members. Zenith CEO Benoît de Clerck stated that the order book for Zenith calibres is filled until 2027.
Transition to Haute Horlogerie
Zenith aims to shift from the mid-range to the premium segment, which will temporarily halt the production of most of its current collection. The project is set for completion by 2029.
The strategy is based on the success of the Zenith G.F.J. Calibre 135, introduced at Watches and Wonders 2025. While current models range between CHF 8,000 and 15,000, the G.F.J. Calibre 135 collection starts at approximately CHF 50,000, aligning with the trend towards ultra-luxury offerings.
Frequently Asked Questions
How many jobs will Zenith cut?
Zenith plans to cut around 100 jobs at its Le Locle manufacture and potentially another 100 internationally.
What is the price range of the Zenith G.F.J. Calibre 135?
The Zenith G.F.J. Calibre 135 collection starts at approximately CHF 50,000.
When will Zenith complete its transition to haute horlogerie?
Zenith aims to complete its transition to haute horlogerie by 2029.