Zenith is undergoing a significant restructuring, cutting approximately 200 jobs as it pivots to focus on high-end watchmaking amidst challenging market conditions. This strategic shift, announced by CEO Benoit de Clerk, follows a period of financial losses and is influenced by factors like the strong Franc, US tariffs, and weak demand from key markets.
- Approximately 200 jobs will be cut.
- Focus shifting to high-end watchmaking.
- Reasons cited include strong Franc, US tariffs, and weak demand from the Middle East and Asia.
The pivot to high-end watchmaking is seen as a move away from the "brutal" middle market, which is expensive and competitive.
The layoffs include about 100 jobs in Le Locle and another 100 in retail and distribution.
This move comes after Jean Arnault took charge of LVMH's watch brands, including Zenith, TAG Heuer, and Hublot.
Zenith's manufacturing base and distribution network are considered oversized for its current production volume.
Despite rumors of divestment, LVMH has denied plans to sell Zenith, and the movement-supply side of the business is expected to continue with a full order book.
The company's move upmarket mirrors similar strategies, such as Montblanc's closure of its Le Locle factory.