layoffs

Zenith Watches Lays Off 70 Of 250 Employees

"Bleak times" at Zenith, LVMH frowns. First they lose some employees, then they lose their CEO Mr. Nataf, and now more employees out the door. 70 to be exactly. Recently, the people at Zenith were informed of the planned layoffs as part of a planned reorganization to assist the troubled watch maker maintain through "the crisis." Zenith of course is not alone during these difficult times where watch and jewelry sales for the entire LVMH group are down about 27% from last year. Zenith didn't provide specific figures for its own annual performance, but all evidence indicates things may be worse for them.

New CEO Jean-Frederic Dufour is expected to make some radical changes, including with the core line of watches - where Nataf's design decisions have been controversial to say the least. Zenith is a proud brand with a great history so I expect that any cleverness injected into a brand revitalization will focus on historical strength and creating a classic style focused line for next year when things should be better for the brand, and the watch market overall. The pictured watch is the Zenith Class Traveler Open El Primero Multicity Alarm.

Via WorldTempus (in French).

Ariel Adams publishes the luxury watch review site aBlogtoRead.com

Tags: downsizing, firings, layoffs, LVMH, watch, zenith

Franck Muller Watch Company Makes Cut Backs, Layoffs - In A Nice Way

by Ariel Adams (RSS feed) —

Filed under: Timepieces / Watches

Metaphorically related to the name behind the "Crazy Hours" watch pictured above, times are crazy at Swiss Franck Muller, which this month is beginning a round of layoffs designed to help maintain survival for this luxury watchmaker. The company has been quiet the last couple of years, but for a while in the early 2000s, was one of the most popular luxury watch makers with their flamboyant good looks. Now, the 550-person company is feeling the sting of the economy and is letting go at least 92 people, a large chunk of their work force. The good news at least is that the people being escorted out will have a nice severance package to enjoy, based on their seniority in the company, and dependents. The truth is that European companies are loathe to engage in mass layoffs given the often personal relationships they enjoy with their employees. Only grave times call for such action, and the parties affected are often always taken care of to the best of the company's abilities. This is in stark contrast to the US, where layoffs are often complimented with just 2 weeks pay, no pension, and a friendly "get the hell out of here."

In addition to the friendly treatment the ex Franck Muller employees are getting, Franck Muller is also hiring a professional "career repositioning firm" whose goal it is to help the laid-off employees find new jobs! Wow. The problems at Franck Muller are not unique, as vastly decreased luxury watch sales are common across the board these days.

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

Tags: firings, franck muller, FranckMuller, layoffs, recession, timepiece, watch

Cartier To Halve Production Workforce

by Ariel Adams (RSS feed) —

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

Chopard To Cut Jobs On Low Sales Forecasts

by Ariel Adams (RSS feed) —

Filed under: Timepieces / Watches

I won't say that Chopard is hurting, but they are anticipating an economic sting based on lower than hoped-for sales at Baselworld later this month.The independently owned watch and jewelry maker employs a total of about 1,800 workers. Chopard's Karl-Friedrich Scheufele recently stated that the company would be laying off 36 employees, from their manufacturing and administration arms. The cut does not represent an immense portion of their labor force, but such companies are not known for making hasty lay-off decisions. The move is a direct result of the poor demand for luxury watches in the current economic atmosphere. The lay-offs will occur in a month or two according to Chopard. Competitors such as the Richemont Group and Cartier have also experienced job cuts, or are considering them. Until the world economy is able to begin a recovery, the luxury markets will continue to suffer demand loss.

Via Forbes.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Tags: Chopard, economy, industry, jobs, layoffs, luxury, timepiece, watch

Saks and Neiman Marcus Announce Major Job Cuts

by Deidre Woollard (RSS feed) —

I mentioned back in November that Saks Fifth Avenue would be cutting capital spending in 2009. We are a few weeks in to the year and Saks Inc. has decided to cut about 1,100 corporate and store positions, which represents nine percent of its total workforce. The company has also taken away merit-based wage increases this year for all employees and suspended 401(k) matching. Saks will also be reducing inventory and trimming other expenses wherever they can.

The reason for all these cuts is the lack on consumer spending. Bloomberg quotes Pete Hastings, a fixed-income analyst with Morgan Keegan & Co. who says that this may only be the beginning of department store cutbacks. After the worst holiday season in around 40 years consumers haven't rushed into the stores in January. Saks posted a 20 percent sales decline in December even after major markdowns on their goods.

Neiman Marcus will also be making some similar changes. The company announced it plans to cut 375 jobs, or 2.3 percent of its workforce a response to their own December slump which saw a 28 percent drop in sales at stores open at least a year.

Source

Tags: department store, DepartmentStore, layoffs, neiman marcus, NeimanMarcus, saks fifth avenue, SaksFifthAvenue

Big Layoffs Planned For Cessna

by Deidre Woollard (RSS feed) —

Filed under: Wings

Last week I briefly touched on the potential layoffs for jetmaker Cessna, Now the Wichita Eagle has all the grisly details. It appears that Cessna Aircraft will cut about 500 jobs in Wichita. The laid-off workers will be given 60-day notices in the next few weeks.

The news follows on the heels of an incentives package worth tens of millions of dollars from the state designed to ensure that Cessna would build its Citation Columbus plant in Wichita. It still plans to do that and by 2014 there should be 1,000 people working there. Unfortunately that is a long way off. For now there are layoffs both at the Wichita plant where Cessna employs 12,000 people and in Oregon where 165 employees will be laid off from the Bend, Oregon plant. Cessna was planning to deliver a record 535 business jets in 2009 but some of the customers who were slated for shipment have asked to defer delivery until the economy is a bit rosier.

Another Wichita-based aviation company Hawker Beechcraft cut five percent of its work force on Friday about 490 people as it lowered target production numbers.The aviation companies are bullish on their long term survival and see this trimming back as a necessity to keep going in lean times.

Source

Tags: cessna, jobs, layoffs