Kering, the luxury conglomerate that owns Swiss watch brands Ulysse Nardin and Girard-Perregaux, has announced plans to reduce their workforce by 25% in response to the COVID-19 pandemic. This decision, affecting around 100 employees, reflects the harsh impact the global health crisis has had on the luxury watch industry. With stores closed and a decrease in tourism, especially from Chinese visitors, the demand for high-end watches has taken a significant hit.
CEO Patrick Pruniaux of Ulysse Nardin and Girard-Perregaux emphasized the long-lasting economic effects of the pandemic, warning that the repercussions may linger for years to come. Despite efforts to stimulate demand through events like the Geneva Watch Days, the industry continues to struggle, raising concerns about potential job cuts among suppliers as well.
Kering recognized the ongoing challenges within the market environment, acknowledging the difficulties faced by its acquired brands. Ulysse Nardin and Girard-Perregaux have been undergoing transformations in recent years, adapting to a changing market landscape. However, the pandemic has accelerated their losses, leading Kering to report substantial asset impairment losses of 201 million euros for the brands.
The struggles in the watch sector amid the pandemic serve as a poignant reminder of the broader challenges luxury industries are facing globally. As companies navigate this new reality, the focus remains on finding innovative solutions to withstand the challenges and thrive in a post-pandemic world.
For more information on Kering’s Swiss watch brands, Ulysse Nardin and Girard-Perregaux, please visit their official websites:
Ulysse Nardin
Girard-Perregaux
