Lvhm: owned watchmaker Zenith to cut jobs, shift upmarket, source says

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Today 13:12

By Alessandro Parodi
PARIS, Oct 23 (Reuters) - LVMH-owned LVMH.PA Swiss watchmaker Zenith has launched a consultation process that could see up to half of its Swiss workforce laid off as it shifts its focus to more profitable luxury watches, a person close to the company said.
Swiss watchmakers have struggled for years with weak demand from inflation-hit consumers and growing competition from smartwatches, with only the most expensive brands proving resilient.
"A staff consultation process was initiated today concerning a proposed strategic repositioning of the Maison," Zenith said in a statement on Thursday, without giving further details.
Under the plan, Zenith will focus on the high-end segment, drawing on its expertise in complex watch movements, the person said. The segment typically includes watches priced above 3,000 Swiss francs ($3,650).
The company could cut up to 100 jobs at its Le Locle plant in Switzerland, around half the workforce there, as well as about 100 positions in international operations, including sales and marketing, the person added.
LVMH did not immediately respond to a request for comment.
Zenith is one of the smaller watch brands owned by the luxury group. LVMH's Watches and Jewellery division reported 2025 sales of €10.49 billion ($11.74 billion) and profit of €1.51 billion.
($1 = 0.8233 Swiss francs)
($1 = 0.8933 euros)

 (Reporting by Alessandro Parodi in Paris. Editing by Crispian Balmer and Mark Potter)
 ((Alessandro.Parodi@thomsonreuters.com;))