Zenith, the Le Locle watch manufacture owned by the French luxury group LVMH (Louis Vuitton Moët Hennessy), has opened a consultation with its staff with a view to possible collective redundancies. A spokesperson confirmed the news, published by Le Temps, on 23 October 2026. According to internal sources cited by the AWP news agency, around 200 jobs are reportedly at risk, including around a hundred in Le Locle. The brand reportedly wants to align its production with actual demand.
What we know about the consultation at Zenith in Le Locle
Zenith's management confirms the consultation, but nothing more. According to the Keystone-ATS dispatch carried by Swissinfo, the spokesperson stated that no further information would be given at this stage.
The figures in circulation therefore do not come from the company. Internal sources, questioned by AWP, speak of around a hundred jobs at risk in Le Locle. Around a hundred others are reportedly at risk abroad, in the distribution network. The total would thus be close to 200 jobs. These are reported estimates, not an official tally.
Collective redundancies remain, at this stage, a possibility. The staff consultation has been opened with a view to possible job cuts, and no decision has been announced.
Why Zenith wants to scale back
The stated reason is to align production volumes with actual demand. After the recovery that followed the pandemic, the brand is said to have recorded losses year after year. This despite the solid performance of certain collections, according to the same sources.
Three external factors are cited: the strong franc, US tariffs and international geopolitical tensions. On top of that comes a structural problem. The size of the industrial and commercial operations is said to be excessive in relation to current needs.
The response attributed to Zenith is a refocusing. The brand reportedly intends to bet more heavily on ultra-luxury watchmaking.
A sale by LVMH ruled out once again
Zenith's financial health has been making headlines since the start of the year. In January 2026, rumours had attributed to LVMH the intention of selling the brand. The French group had firmly denied them. The source cited by AWP likewise rules out any plan to sell.
Rising watch exports: an apparent paradox
The announcement comes as the industry's overall figures are improving. According to the Federation of the Swiss Watch Industry (FH), watch exports in September 2026 extend the rise that began in June. 2clics detailed these data in its article on September's watch exports.
For the third quarter, the Federal Office for Customs and Border Security (FOCBS) puts watch exports at 6.7 billion francs, up 4.7%. The breakdown by market, published by the FH for the month of September alone, nevertheless qualifies this picture.
| Market | Change in watch exports, September 2026 |
|---|---|
| United States | +85.7% (base effect, according to the FH) |
| European Union | +15.5% |
| Japan | +12.3% |
| Hong Kong | +3.0% |
| United Kingdom | −5.2% |
| Singapore | −8.3% |
| United Arab Emirates | −9.0% |
| China | −14.2% |
These figures lend themselves to two readings. The first is favourable: the industry has been recovering since June, and Jean-Philippe Bertschy, an analyst at the bank Vontobel, notes the first signs of renewed orders at suppliers. He sees in this a possible return of confidence among brands.
The second reading is cautious. The FH attributes the jump in exports to the United States to a very weak comparison period. This figure therefore does not measure a lasting recovery in American demand. It also urges caution regarding France (+128.2%), where flows may have been shifted from other countries. Bertschy himself considers that these data "nevertheless call for caution".
The very top end drives growth, not every brand
Zenith's case is part of an increasingly polarised industry. According to a Swissinfo article of 8 September 2026, ultra-luxury timepieces account for three quarters of the sector's growth. Bertschy, for his part, expects a divergence between the major watch houses and the market as a whole.
A rise in total exports can therefore coexist with losses at a given brand. In September, exports of watches priced above 3,000 francs rose by 9.9% and contributed significantly to the overall increase. Zenith's refocusing on ultra-luxury targets this segment.
What this means for jobs in the Swiss watch industry
For employees in Le Locle, nothing has been decided yet. The consultation precedes any decision, and neither the final number of job cuts nor their timetable is known.
For the industry's suppliers, the signals remain mixed. Orders seem to be picking up according to Vontobel, but a brand like Zenith wants to align its volumes with actual demand. The recovery in exports therefore does not guarantee that jobs will be maintained at every company.
In the same town, 2clics has already published an article on jobs at Montblanc in Le Locle.
What we don't know yet
- The exact number of jobs cut and their breakdown between production, administration and distribution.
- The timetable of the consultation and the date of any decisions.
- Whether there is a social plan and what it contains.
- The countries affected in the distribution network abroad.
- Zenith's total headcount in Le Locle, which the sources do not specify.
- The scale of the brand's losses: no figure has been published.
