Turmoil as Swarovski Faces Profits Plunge and 6,000 Job Losses

(IDEX Online) - The family-owned Swarovski crystal jewelry empire is reportedly in turmoil as it faces plunging profits and the prospect of wholesale job losses.

Robert Buchbauer, recently-appointed CEO and great-great grandson of the company's founder Daniel, wants to shed 6,000 staff, shut 750 stores and take the brand upmarket, according to the AFP press agency.

But other family members are said to oppose the drastic proposals, drawn up as the Austria-based company faces a predicted 30 per cent slump in profits -  from £2.5bn last year down to an estimated £1.7bn.

It is suffering stiff competition from China, where factories are churning out Swarovski-style crystal at a fraction of the price.

Swarovski announced in July that it would be cutting 1,600 jobs after a "massive" decline in sales.

It said it was reviewing all its business processes and activities, which includes manufacturing in Austria, India, Thailand, Vietnam, Serbia and the USA.