The watch brand Zenith, owned by the French luxury giant LVMH, is set to cut around 100 jobs at its manufacturing facility in Le Locle, Switzerland, as the watchmaking sector faces a challenging environment.
"We confirm that we have initiated a staff consultation process today as part of a strategic repositioning project for the company," the watchmaker stated to AFP, confirming a report by the Swiss daily *Le Temps*.
"Out of respect for the procedure and for our employees—with whom discussions are currently underway—we will not be providing any further details until this consultation process has concluded," added the company, which was founded in 1865 in Le Locle by Swiss watchmaker Georges Favre-Jacot.
According to a source familiar with the matter, approximately 100 positions are affected out of the 196 jobs based in Le Locle—a town synonymous with Swiss watchmaking, located in the canton of Neuchâtel. Around 100 additional positions are also at stake internationally.
*Le Temps* said that these job cuts are part of a shift in the brand's strategy, as it seeks to refocus on high-end watchmaking.
Management’s thinking is informed, in particular, by the success of the Zenith G.F.J. Calibre 135—a model that won an award at the most recent Grand Prix d’Horlogerie de Genève. Its price starts at "just under 50,000 francs," the daily newspaper notes,
"In terms of pricing, this would mean the brand completely abandoning its current segment—where its core market lies between 8,000 and 15,000 francs."
The Swiss watch industry is currently navigating a more challenging phase following three years of record growth.
In 2023, total Swiss watch exports reached an all-time high of 26.7 billion francs.
Since then, however, the sector has faced a series of shocks to demand, including a decline in consumption in China, the imposition of U.S. tariffs, and conflict in the Middle East.
Exports fell by 2.8 percent in 2024 and by another 1.7 percent in 2025, dropping back to 25.6 billion francs—though the ultra-high-end segment has continued to grow.
To help companies weather the impact of U.S. tariffs and limit layoffs, the Swiss government has extended the duration of partial unemployment benefits from 18 to 24 months.