Zenith, the historic Swiss watchmaker owned by LVMH, has opened a staff consultation over a proposed strategic repositioning. Reports published on 22–23 October 2026 suggest that up to 100 positions at its Le Locle manufacture could be affected, with approximately 100 more roles potentially at risk internationally. These are proposed cuts, not confirmed completed dismissals.

What Zenith has confirmed

In a statement reported by Reuters on 23 October, Zenith confirmed that a staff consultation had begun concerning a proposed strategic repositioning of the company. The watchmaker declined to give further details while discussions with employees continue. That distinction is essential: the consultation is confirmed, but the eventual number of job losses and the final structure of the business have not been announced.

Swiss newspaper Le Temps reported the proposal on 22 October after management presented it to staff. Reuters subsequently reported that the potential cuts could affect around half of the workforce at Le Locle. The figures attributed to people familiar with the plan must not be confused with a final decision.

How many jobs could be at risk in Le Locle?

According to the reports, the manufacture employs approximately 200 people in Le Locle, in the canton of Neuchâtel. Up to 100 positions there could be eliminated under the proposal. A similar number of international roles, including in sales and marketing, may also be at risk as the distribution network is reviewed. These estimates are not a confirmed redundancy list.

The human dimension is substantial. Behind every position are specialised skills, families and a local watchmaking community. A reduction on this scale would matter well beyond one brand, especially in a region whose identity and employment are closely linked to horology.

Why would Zenith move further upmarket?

The reported strategy would emphasise higher-end watches and the manufacture's expertise in sophisticated mechanical movements. The logic is understandable in a polarised luxury market: the most expensive segments have generally been more resilient than accessible and mid-priced categories. Yet focusing on higher average selling prices does not automatically guarantee stronger demand, healthier margins or a successful transition.

Zenith is known for its mechanical chronographs and the El Primero heritage. The proposal raises questions about future collections, production volumes, retail presence and access to the brand, but none of those product-level changes has been confirmed. It would be premature to announce discontinuations or price increases.

A manufacture with roots in 1865

Zenith was founded in Le Locle in 1865. The manufacture's historical site remains a symbol of the industrial culture of Swiss watchmaking. The Federation of the Swiss Watch Industry documented the restoration of its central building, constructed in 1905, and the site's continuing connection to the brand's origins. That heritage makes the proposed restructuring particularly significant for the region.

What this means for Swiss watchmaking and independent brands

The development highlights a difficult balance: preserving technical expertise while adapting production and distribution to changing demand. For smaller independent brands, the lesson is not simply to raise prices. It is to understand customers, control costs, communicate honestly about value and build sustainable relationships without sacrificing craftsmanship.

At EP – Eduardo Pimenta Watches, our approach is to hand-assemble watches in Switzerland and explain the choices behind each piece. Our scale and business model are different from Zenith's, and no direct comparison of resources or industrial capabilities is implied. Readers interested in independent Swiss-assembled watches can explore the EP Watches collection.

What happens next?

The key next step is the outcome of the staff consultation. Watch for a formal company announcement specifying the final headcount impact, the scope of the distribution changes and the practical consequences for the Le Locle manufacture. Until then, the potential job losses should be described as a proposal under consultation, not as completed layoffs.

Sources: Le Temps, 22 October 2026; Reuters, 23 October 2026; Federation of the Swiss Watch Industry, historical manufacture context.

Independent editorial analysis, 23 October 2026. Information may evolve during the consultation. EP Watches has no affiliation with Zenith, LVMH or the other organisations mentioned. The archive image is used under its stated Creative Commons licence, with attribution.