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Business News: LVMH-Owned Zenith Is Restructuring In Major Reset As Brand Plans Job Cuts And Production Drop In Shift To High-End Market
Zenith, the storied Swiss brand founded more than a century ago and known for its El Primero high-beat chronograph movement, will undergo major restructuring, forcing the LVMH-owned company to significantly reduce its workforce and scale back production and distribution, with plans to reposition the marque as a high-horology, low-volume watchmaker. The Zenith overhaul follows years of financial losses by the brand, founded by Georges Favre-Jacot in Le Locle, Switzerland, in 1865. Chief Executive Officer Benoit De Clerck addressed employees at the company's headquarters this week, announcing the restructuring and warning that the company could eliminate as many as 100 jobs, or about half the workforce at the manufacture. To complete the reorganization and reposition the brand by 2029, the company may also eliminate another 100 positions, including the watch brand's entire international team. A Zenith watchmaker. Management and executives are now in a formal "consultation process" with employees over the next three weeks to negotiate the terms of the restructuring and job cuts. Unia, the Swiss employees' trade union representing workers at the manufacturer, will meet with employees next week and join management in the consultation process, according to people familiar with the matter who spoke on condition of anonymity because they were not permitted to comment publicly. "We confirm that a staff consultation process was initiated today [Thursday] concerning a proposed ...