Gucci downsizes watch division and lays off 21 employees

Gucci downsizes watch division and lays off 21 employees

The luxury brand belonging to the Kering Group Gucci has been struggling with declining demand for some time, especially in China.

Now, according to Swiss media reports, the first consequences are taking place. As a result of a consultation process, 21 jobs will be eliminated in the watchmaking sector. The largest Swiss trade union, Unia, is disappointed.

At the beginning of the year, Kering announced a reorganization to retain the approximately 60 jobs at Gucci's watch factory in Cortaillod NE and to consolidate the watch department.

The newspaper Blick reports that Gucci emphasizes that "various proposals were considered during this process, including internal transfers or early retirements. Ultimately, however, they were forced to dismiss 21 people."

Luxury is in crisis

Kering is not the only company in the global luxury goods industry that is suffering from the slump in demand in China and the unpredictable tariff behavior of the USA.

The Consulting firm Bain & Company forecast on Wednesday that global sales of luxury goods will decline by two to five percent this year. The previous growth forecast of zero to four percent has been significantly revised downwards. The situation in this sector is expected to deteriorate further after a one percent decline in 2024.

The traditional Lucerne-based jeweler recently laid off around 30 employees, citing the "increasing challenges in the luxury industry." This was not only due to the tense global economic situation, but also due to the fact that more and more major watch brands are selling through their own boutiques. The layoffs primarily affect the administration at Gübelin's headquarters in Lucerne.