Swiss Luxury Watchmakers Seek State Aid Amid Market Slowdown

Facing a notable decline in demand, Swiss luxury watchmakers Girard-Perregaux and Ulysse Nardin have sought financial aid from the government to safeguard jobs and avoid staff reductions as per industry sources.

These iconic brands, owned by the Sowind Group, have already placed around 50 of their 320 employees on furlough, according to CEO Patrick Pruniaux.

Swiss Government Offers Financial Relief

The Swiss government’s aid program is designed to prevent permanent job losses by covering up to 80% of workers’ salaries during economic slowdowns. Companies can reduce working hours or eliminate shifts without resorting to layoffs. Although this program has been in place for decades, it became a lifeline for the watch industry during the pandemic, and the sector is tapping into it again amid the current downturn.

Girard-Perregaux and Ulysse Nardin Turn to Government Support to Retain Workforce

Mid-Tier Brands Feel the Pressure

Luxury watch brands that cater to the mid-tier market, such as Girard-Perregaux and Ulysse Nardin, have been the most impacted by the decline in demand. In contrast, top-tier brands like Rolex and Patek Philippe have shown greater resilience, maintaining steady sales in a challenging market. .