Zenith, the Swiss watchmaker owned by French luxury group LVMH, has launched a staff consultation as part of a strategic repositioning that could affect around 100 jobs at its manufacture in Le Locle, Switzerland. The move comes as Swiss watch exports decline and the industry faces weaker demand in key markets.
According to reporting by AFP, which confirmed an earlier report by Swiss newspaper Le Temps, around 100 of the 196 jobs at Zenith’s Le Locle facility are affected. A further 100 positions are reportedly at risk internationally, although the company has not confirmed the final number of redundancies.
Zenith told AFP: “We can confirm that we have today launched a staff consultation as part of a strategic repositioning project for the maison.”
The company said it would not disclose further details while discussions with employees continue.
Zenith weighs a shift towards high-end watchmaking
The proposed restructuring is linked to a strategic shift towards haute horlogerie, or high-end watchmaking, according to Le Temps. The newspaper reported that management is looking to build on the success of the Zenith G.F.J. Calibre 135, which won an award at the latest Grand Prix d’Horlogerie de Genève.
The model is priced at just under 50,000 Swiss francs, according to Le Temps, marking a significant step above Zenith’s existing core price range.
The newspaper reported that the brand’s current core market sits between 8,000 and 15,000 Swiss francs. A stronger focus on high-end timepieces would therefore represent a substantial change in its price positioning.
Founded in 1865 by Swiss watchmaker Georges Favre-Jacot in Le Locle, Zenith has a long-standing presence in one of Switzerland’s established watchmaking centres.
Swiss watch exports decline after record growth
Zenith’s proposed changes come during a tougher period for the wider Swiss watch industry, following three years of record growth. Sector exports reached an all-time high of 26.7 billion Swiss francs in 2023, before falling over the following two years.
The figures cited in the report show the scale of the downturn:
2023: Swiss watch exports reached a record 26.7 billion Swiss francs.
2024: Exports fell by 2.8%.
2025: Exports declined by a further 1.7%, reaching 25.6 billion Swiss francs.
The industry has faced several demand pressures, including weaker consumption in China, US tariffs and the conflict in the Middle East. Despite the overall decline, the ultra-high-end segment continued to grow, according to the report.
The Swiss government has also extended short-time working benefit payments from 18 to 24 months to help companies manage the impact of US tariffs and limit redundancies.
Employee consultations remain under way
Zenith has not disclosed the final outcome of its consultation or confirmed how many employees will ultimately lose their jobs. The company said it would provide no further details until the process had been completed.
The consultation will determine how the proposed repositioning affects employees at Le Locle, while the reported international positions remain at risk. The outcome will also offer a clearer indication of how Zenith intends to reshape its workforce as it pursues a greater emphasis on high-end watchmaking.
For now, the proposed job changes place Zenith among the watchmakers navigating a more challenging market after the sector’s record export performance in 2023.
