Swatch CEO Nick Hayek said the company has no plans to lay off employees to protect profits. Some time ago, a Swiss newspaper published a report, citing Richemont’s minutes, revealing that in view of the severe market situation and the strong Swiss franc, the company will reduce its Swiss staff by 4%. This means that the luxury goods group, which owns brands such as Cartier and Jaeger-LeCoultre, will lay off as many as 350 jobs in Switzerland, and Richemont confirmed the authenticity of the report on Monday.
The Swatch Group shows that the outlook is not entirely negative. Nick Hayek revealed that despite the sluggish demand from high-end brands, sales of Omega and Tissot watches have grown strongly during the Chinese New Year. “Compared with the same period last year, Longines, Tissot and Omega performed very well in the four days of the Chinese New Year this year,” said Nick Hayek.
Nick Hayek confirmed that the Swatch Group’s growth rate in 2015 was more than 5% (in local currency terms). Specifically, 80-85% of the group’s market consumption was positive. ‘The good performance of the Group’s business in the Chinese mainland market in January 2016 is proof of that,’ concludes Nick Hayek.