State Aid for Swiss Watchmakers
September 10, 24
(IDEX Online) - Two Swiss watchmakers have confirmed they're relying on government help to pay workers, as they battle an ongoing downturn in demand.
Luxury brands Girard-Perregaux and Ulysse Nardin, which were sold off earlier this year by the Kering Group, have put 15 per cent of their workforce on short-time working. The state is paying up to 80 per cent of their salaries.
Last month 40 companies - mostly tool, machinery or component suppliers - applied for permission to cut their workers' hours in Jura, one of Switzerland's 26 cantons.
But the Sowind Group, which owns Girard-Perregaux and Ulysse Nardin, is the first watchmaker known to have received government help.
Luxury watchmakers cut production capacity when demand weakens, but strive to hold on to highly-trained staff.
Swiss watch exports plunged by 7.2 per cent in June - the biggest fall of 2024 - according to the Federation of the Swiss Watch Industry Exports (FHS).
They rallied in July, up by 1.6 per cent overall, but fell 32.8 per cent in China, which is Switzerland's third biggest market for watches.
Pic courtesy Girard-Perregaux.