Zenith Sets Sights on Higher Ground with Layoffs
After several years in the red and challenging market conditions predicted, Zenith is seeking higher ground by focusing on high-end watchmaking, eliminating about 200 jobs in the process. As reported by Swiss newspaper Le Temps, chief executive Benoit de Clerk broke the news to employees on Thursday, citing the strong Franc, US tariffs, and weak demand from the Middle East and Asia. Zenith’s pivot was foreshadowed by the excellent GFJ line launched last year, and comes in the wake of Jean Arnault taking charge of the LVMH’s watch brands, namely Zenith, TAG Heuer, and Hublot, after having engineered Louis Vuitton’s ascent into fine watchmaking. The middle market, which Zenith flees, is particularly brutal – expensive to play in and competitive. Zenith is not the only one to abandon it, Mr de Clerk also referenced the closure of Montblanc’s Le Locle factory, as that brand too shifts focus upmarket. Zenith’s greatest strengths, its mature, capable manufacturing base and wide distribution, are oversized for the brand’s production volume. Unable to feed this beast or put it to work, Zenith will be cutting about a hundred jobs, roughly half of its workforce, in Le Locle, and a further hundred in retail and distribution. In 2024, LVMH announced plans to grow Zenith’s Le Locle manufacture to supply other group brands with movements. Hublot had been using Zenith movements for a decade already, and LVMH envisioned an entire catalog of Zenith-made “in-house” move...
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