cuts

Cartier To Halve Production Workforce

Filed under: Jewelry, Timepieces / Watches

By the sound of it you'd think that Cartier was next to being bankrupt, though that isn't the case. More like the optimistic balloon of sales growth is deflating (one of the reasons I used the "Ballon Bleu" watch for the image - and added the sad face). During the last few years of rapid growth and increased demand for Swiss watches and luxury goods, production increased and luxury firms like Cartier staffed themselves accordingly for what looking like prefect blue skies ahead. Now, about 5 years after that all started, the bubble has burst, and Cartier is being forced to let go of many of those people it hired at its production facility in La Chaux-de-Fonds to help supply the perceived demand for luxury watches. Note that this is one of three Cartier production sites.

While Cartier's market success is not exactly a bellwether of the luxury industry, it is a pretty good indicator of current trends. Lots of companies are reducing their work forces, but the reality is that they are just getting closer to the way things where before the economy inflated itself so much. Now in survival or recession mode, luxury brands such as Cartier need to save cash while planning on better times ahead - instead of focusing on making lots of watches right now. Recall again that this cut at Cartier of about 400-500 people (or roughly 50%-60% of their work force) is in the production area, not necessarily at other areas of the Richemont Group owned company including administration, marketing, and sales. Many retained employees will received roughly 94% of their pay until things get better. Then then Ballon Bleu watch above can turn that frown... upside down!

Via WorldTempus here & here (in French).

Ariel Adams publishes the popular watch review site aBlogtoRead.com.

Tags: cartier, company, cuts, employees, group, jobs, layoffs, luxury, richemont, watch

Richemont Owned Roger Dubuis Watch Brand To Cut Jobs

by Ariel Adams (RSS feed) —

Filed under: Timepieces / Watches

Last year the Richemont Group added Roger Dubuis to its luxury watch collection of brands. Richemont owns such prestigious brands as A. Lange & Sohne, Jaeger LeCoultre, and Panerai. The acquisition of the Roger Dubuis occurred in the midst of wild growth in key markets such as Asia and the Middle East. With surges expected, Roger Dubuis promoted a liberal hiring policy adding new staff quickly.

Recent revenue disappointments have resulted in a decision to lay off as much as one sixth of the Roger Dubuis work force, or about 70 people. The move will emphasize a marketing refocus for the brand that hopes to increase its presence in retail stores as well as complete production on highly sought after high-end models.

Roger Dubuis seems eager to express that this move does not signify an end to the esteemed watch maker, nor does it indicate a slew of bad management decisions. No one is immune from the current economic market, and Roger Dubuis was perhaps a bit too optimistic with its growth and watch production capacity. Unlike "Tier One" luxury watch brands with the most valuable brand names, Roger Dubuis is less known (making them "Tier Two'), even though they still offer a very high quality and complex watch product line. This can negatively affect the value proposition of buying their watches in hard times for some consumers.

Despite this news, Roger Dubuis customers are still eagerly awaiting the release of its most expensive watch date, a $500,000 complex multi-timezone perpetual calendar timepiece. Pictured, is a Roger Dubuis Excalibur with a 45mm white gold case, minute repeater, perpetual calendar, tourbillion, and double rotors.

Via Bloomberg News.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Tags: cut, cuts, EX45 0829 0 N9C.71R, Ex4508290N9c.71r, excalibur, industry, jobs, richemont, roger dubuis, RogerDubuis, timepiece, watch

The Movado Diamond, Are More Facets Worth More Money?

by Deidre Woollard (RSS feed) —

Filed under: Jewelry

A good cut can sometimes make a subpar diamond more brilliant but how many facets are necessary for maximum brilliance. We've seen a wide variety of facets used in trademarked diamond cuts but the most facets I have heard of used are on The Movado Diamond. Movado, the watch maker, also creates patented and proprietary 114-facet round and square cut diamonds. They say the cut brings out the brilliance and fire of the stone. I've checked these out in the stores and they do throw off a lot of smaller sparkles but they also cost a bit more than other diamonds of a similar size.

Source

Tags: cuts, diamonds, facets, movado