Cartire'S Parent Company Will Cut Jobs

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The group announced recently that it plans to cut 200-250 jobs.

According to sources, the group's layoff plan was set up earlier this month, with the aim of reducing the number of Swiss headquarters staff to a minimum.

Earlier this month, the group announced profits in the first half of this year.

Demand continued to slump, and group profits fell 51% to 540 million euros, or 605 million US dollars, compared with the same period last year.

As global luxury sales growth slowed, especially the luxury watch market, sales of luxury watches, including brands like Vacheron Constantin, IWC, pan Na Hai and count, fell by 17% in the first half of the year, while sales of watches sold by jewellery brands declined by 13%.

In recent years, its business has been severely hit by the high Swiss franc, the sluggish luxury watch retail environment, China's fight against bribery and corruption, and the changing shopping habits.

In February, the group's watch production department in Switzerland has cut 350 jobs, cutting its labour force to 4% of its headquarters workforce.

According to the news, the group said that the second large-scale layoffs this year will mainly focus on Vacheron Constantin and the count's brand.

But at the beginning of this month, when the first half of the year was released, the group said it would not lay off the watch department. Gary Saage, group chief financial officer, pointed out that the group will continue to invest in the manufacturing sector, and it will also improve the efficiency of the Department.

In the context of the continued downturn in the global luxury retail environment, the group adopted special repurchase measures in the first half of the year, mainly buying back expensive watches and gold and jewellery of Cartire brand. The group explained that the purpose of inventory repurchase is to prevent third party retailers from discounting sales in order to reduce inventory pressure, resulting in damage to the brand reputation of the group.

In the first half of the year, the group repurchased those unsalable products at a price of 249 million euros or 279 million dollars.

The group is now building a new IWC production technology center in Schaffhausen, northern Switzerland, and expanding its global logistics center in Fribourg, western Switzerland.

At the beginning of this month, Gary Saage said that the group will adapt to the new normal of the watch business. Before the return of Chinese gifts, the group does not expect the watch business to grow by more than 20%. The group will focus on the business of all products, so that all businesses will grow steadily.