Swarovski cuts around 400 jobs at the Wattens site

By then, the number of employees at the headquarters is expected to decrease from the current 2,480 to around 2,100, it was stated at a press conference in Wattens on Thursday. The reason for the measure was cited as the important but weakening B2B business for the location.

How many layoffs will ultimately be made is still unclear, said Jerome Dandrieux, General Manager in Wattens. This depends on how many employees voluntarily leave the company. This should be clear by mid-December. The layoffs will then take place at the beginning of January, and retirements by the end of the year were also considered for the total of 400 affected. The company has worked out a social plan with the works council and invested 11,000 euros in a foundation.

Wattens in "paradoxical situation"

Currently, there is a "paradoxical situation" at Swarovski, Dandrieux, who is also Chief HR Officer at the company, tried to explain. The group shows "robust figures" thanks to the well-running jewelry business, but in Wattens, production is mainly for business customers. This makes them dependent on external circumstances: "We have no good perspective in China and in the luxury industry," he said. The automotive industry, for which Swarovski is increasingly fulfilling orders, is also in a difficult situation.

Additionally, the manager pointed out the prevailing conditions here: "Producing in Austria is difficult." The company has to bear high labor, energy, and raw material costs. Added to this are global circumstances, including the "unpredictable tariff policy of the USA."

Dandrieux: "We believe in Wattens"

Therefore, the "capacity utilization" in Wattens has decreased, and "adjustments" are necessary. In addition to job cuts, all employees were offered a ten percent reduction in working hours, and the three-shift operation will be reduced to two shifts. The night shift, which according to Dandrieux costs "millions," will be eliminated. At the same time, he expressed a commitment to the location: "We believe in Wattens." Nevertheless: "If we do nothing now, we will have to make more difficult decisions in a year."

The company certainly has a "plan" for Wattens, aiming to reach new customers. Additionally, the core business is to be stabilized and further investments made. Investments amounting to 150 million euros are planned by 2030. Whether - as widely rumored - properties on the company premises will also be sold was not yet decided, as the manager said.

Workforce informed, no protests planned

Executives and the rest of the workforce were informed about the planned job cuts in several information sessions throughout Thursday, said works council chairwoman Selina Eder to the APA. "Unfortunately, we cannot prevent this," she stated. Protest actions are not planned, as these have "not been very helpful based on experience." In any case, they are trying to "get the best possible outcome for the employees" and are informing them about the far-reaching consequences of reduced working hours. The works council now wants to approach the company management with proposals to increase revenue, as they have done recently.

The black-red Tyrolean state government expressed concern. This is "a severe blow" for employees, Wattens, and the state of Tyrol, said Labor Councillor Astrid Mair (ÖVP) in a statement: "The development at the Wattens site is causing us great concern." She also reminded the company that "the state of Tyrol has stood fully behind the company Swarovski in the past - even and especially in difficult times." The company management must therefore also take responsibility and put together an appropriate social package. The state will consider suitable labor market policy instruments for the employees, announced Mair and Economic Councillor Mario Gerber (ÖVP).

Chamber of Labor: "Treason", Economy and Industry: "Location Under Pressure"

The Chamber of Labor (AK) already fired on all cylinders in a statement in the morning: For Tyrol's AK President Erwin Zangerl, Swarovski's current step was a "declaration of bankruptcy for the corporate management's strategy and for the Wattens site," site commitments were "mere lip service." The federal and state governments have repeatedly supported the company with taxpayers' money. However, the site is being "sliced up with a salami tactic." "This is treason, and we will clearly stand on the side of the land and the people," Zangerl said in clear terms.

For the Chamber of Commerce, the job cuts show "how much the economic and industrial location of Austria is under pressure." President Barbara Thaler therefore described it as a "strong signal" if Swarovski continues to make a site commitment. For the Tyrolean Federation of Industry (IV), Swarovski's step was a "disastrous message" and "another signal for the declining competitiveness in Tyrol." "What we are currently experiencing is not the result of a sudden shock, but the consequence of years of misdevelopment in location policy," said IV head Max Kloger in a statement.

Swarovski: Larger Job Cuts Already in 2020

In recent years, the globally operating company had steadily reduced its workforce at its headquarters. In 2020, 1,200 employees were affected, previously 4,600 people worked in Wattens. The job cuts in the midst of the Corona pandemic had caused a stir at the time - also in state politics. A labor foundation and a social plan were then established.

But the crystal company was not only in the headlines because of the job cuts. The corporate management and the economic situation - not least due to the Corona crisis - were also in focus. A dispute, partly carried out in courts and the media, was declared over this summer. The shareholders unanimously agreed on the creation of an "integrated crystal company." The new DSW Kristall AG & Co KG is a 100-percent subsidiary of the Swiss Swarovski International Holding (SIH). The Wattens operation and thus all employees were incorporated into the new company. The company's figures had recently improved somewhat: Revenue in the 2024 fiscal year increased from 1.8 to 1.9 billion euros compared to the previous year.

(APA/Red)

This article has been automatically translated, read the original article here.