Categorized | Economy, Luxury Industry, News

Luxury Industries Lose More Jobs

Posted on 20 June 2009 by Papessa

In the luxury industry, both Zenith and Metalor have indicated they intend to cut further staff. The luxury watch maker Franck Muller already shook up the Romandy region of Switzerland with the announcement of a 50% reduction in the company’s 450 strong workforce.

Zenith and Metalor have announced 120 a total of 120 job losses between them. The two companies say that falling orders for luxury watches and jewelry are the cause. They had each already made job cuts several months back.

The job cuts hit the canton of Neuchatel particularly hard. Neuchatel has a large proportion of the luxury brands headquartered there.

Metalor, specialized in precious metals (present in both Neuchatel and Marin) will be laying off roughly 50 staff.

Zenith is a subsidiary of LVMH and the spokesman indicated that the substantial difficulties that the sector is experiencing are behind the job losses. All branches of the business are affected by the cuts and all levels of the company. Zenith also let go 20 staff in January of this year.

The companies have not divulged their financial situation but analysts evaluate sales for 2008 at roughly 100 million francs. It is difficult to determine the extent of the decrease in sales, but sector analysts say it is roughly 30%. Zenith is also strongly present in the US market where sales have declined as much as 50%.

Metalor is one of the main suppliers of Rolex and explains its financial straits in similar terms – the morose state of the luxury sector. Zenith’s firing of 50 staff adds to the 40 they let go in late 2008. Metalor employs 460 people in Switzerland and 1300 worldwide.
For 2008, the company made a profit CHF 62 million on sales of 330 million.

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