LVMH-owned Zenith is initiating a significant restructuring plan, which includes substantial job cuts and a reduction in production and distribution. The brand aims to reposition itself as a high-horology, low-volume watchmaker, shifting away from its mid-tier pricing strategy in response to years of financial losses and changing market demands.
- Plans to reduce workforce by up to 100 jobs, potentially half the current staff.
- Further job cuts may eliminate the entire international team.
- Shift to reposition the brand as a high-horology, low-volume watchmaker.
- Cease production of many core catalog models like Chronomaster, Defy, and Pilot lines.
- Focus on haute horology product lines.
The restructuring follows years of financial losses for the brand, founded in 1865.
The brand's CEO cited challenges including a strong Swiss franc, U.S. import tariffs, and declining demand in key markets like the Middle East and Asia as reasons for the shift.
Zenith will continue supplying movements, such as its El Primero caliber, to other LVMH brands.
After-sales operations and services, including the ability to service vintage models, will continue.
The brand holds over 1 million components for after-sales repair and service in Le Locle.
This restructuring mirrors similar staff reductions seen at other Swiss watch brands like IWC, Montblanc, Chopard, and Breitling.