Zenith plans around 100 job cuts at Le Locle site

Around 100 of Zenith’s 196 Le Locle jobs are affected by a planned restructuring at the company’s manufacturing site in the Neuchâtel town. The watchmaker, owned by French luxury group LVMH, confirmed to AFP that it had launched a staff consultation process, following a report by Le Temps. A source familiar with the matter said around 100 further positions are at stake internationally.

Zenith said the process formed part of a strategic repositioning project and that discussions with employees were underway. The company declined to comment further while consultation continues. The announcement lands as Swiss watch exports retreat from the record levels reached during three years of growth, and as manufacturers contend with weaker demand in China, US tariffs and conflict in the Middle East.

Founded in Le Locle in 1865 by watchmaker Georges Favre-Jacot, Zenith is closely tied to the town’s watchmaking identity. The proposed local cuts put a long-established employer at the centre of a broader industry adjustment.

Zenith’s repositioning points towards watches priced well above its current core range. Le Temps reported that the brand is seeking to refocus on high-end watchmaking, with management informed in part by the success of the Zenith G.F.J. Calibre 135. The model won an award at the most recent Grand Prix d’Horlogerie de Genève and starts at just under CHF 50,000.

That price sits far above the CHF 8,000 to CHF 15,000 range where Le Temps says Zenith’s core market currently lies. The newspaper described the proposed direction as a complete departure from that segment. The shift would put the company’s product strategy at the heart of its restructuring, as it assesses how to position the brand in a tougher market.

Zenith was founded in Le Locle in 1865 by Swiss watchmaker Georges Favre-Jacot. Its history gives the company a deep connection to the Neuchâtel watchmaking district, while its ownership by LVMH links it to one of the world’s largest luxury groups.

Swiss watch exports fell for a second consecutive year in 2025, after reaching a record CHF 26.7 billion in 2023. Exports declined by 2.8% in 2024 and a further 1.7% in 2025, to CHF 25.6 billion. The downturn follows three years of record growth and is shaping the conditions facing watchmakers across the country.

The industry has been hit by a series of demand shocks. Consumption in China has declined, the United States has imposed tariffs, and conflict in the Middle East has added to the pressures on the sector. The ultra-high-end segment has continued to grow, even as total exports have dropped.

That split helps explain the appeal of a strategy centred on more expensive watches, while the scale of Zenith’s planned cuts underscores the employment consequences of the industry’s adjustment. Around 100 positions are affected at the Le Locle site, with another 100 or so at stake internationally.

The Swiss government has extended partial unemployment benefits from 18 to 24 months as companies face the effects of US tariffs and seek to limit layoffs. The measure gives employers a longer period in which to use reduced working hours rather than dismiss staff, as the watch sector moves through a more difficult phase.

For Le Locle, the Zenith plan carries particular weight because the company was founded in the town and continues to employ 196 people at its manufacturing site. The proposed restructuring would affect around 100 of those jobs. The consultation process is now underway, with the company saying it will provide no further details until it concludes.

Zenith’s decision also reflects a strategic question facing the brand: how far to move towards high-end watchmaking while its traditional core range remains between CHF 8,000 and CHF 15,000. The G.F.J. Calibre 135, priced just under CHF 50,000, offers one visible sign of that direction.