But for now, the industry is still doing well. The Employers' Convention of the Swiss watch industry published on Wednesday the number of jobs, which stood at 65,000 at the end of September. A level that had not been reached since the quartz crisis around fifty years ago. Ludovic Voillat, secretary general, however, warns: “This figure does not reflect the general situation.” Even less so since on the ground, nervousness has clearly spread to the brands, the drivers of the industry.
Temporary jobs massively cut
The subject is sensitive. He touches the image and everything is done to dismiss negative messages. Clearly, large employers, mainly groups, do not communicate. Behind the scenes, however, everything is known and the current configuration is potentially explosive. Noé Pelet, a watchmaking specialist with the Unia union, outlines in three lines what he sees in the Vallée de Joux, a particularly affected Vaud region: “We feel a tension. The temporary workers were thanked en masse. The reduction in working hours is widely extended.”
The Vallée de Joux is precisely a hot spot at the start of the year. Watchmaking occupies a key position there, accounting for nearly 75% of the approximately 8,000 jobs. With the particularity of a strong presence of cross-border workers, who represent nearly 65% of employees, or between 4700 and 4800. Their census is held on a monthly basis and constitutes a valuable indicator. Laurent Reymondin, director of the Association for the Development of Economic Activities in the Vallée de Joux (Adaev), notes that after “a reasonable drop at the end of the summer”, of the order of 150 positions, the number of cross-border workers has “stabilized”. An indicator of confidence, according to him: “In 2025, everyone will pull back. The uncertainty is 2026.”
High-end brands are also affected
A more worrying sign that is still difficult to perceive is the nervousness of the brands. Because several houses, still preserved until now due to their high-end positioning, are affected head-on.
The Jaeger-LeCoultre manufacture, based in Le Sentier, is raising a lot of concerns at the moment. It is one of the major employers in the Vallée de Joux, with nearly a thousand jobs and the entire company is affected by RHT. The factory, owned by the Geneva luxury group Richemont, is closed two days a week and not all employees are present on opening days. The management of Jaeger-LeCoultre, contacted by Time on several occasions, did not respond.
Within Richemont, the only house that would be an exception at the moment would be Vacheron Constantin, whose production is partly carried out from the Vallée de Joux and which is recognized for having pursued a reasonable growth strategy in recent years. On the other hand, other Richemont brands are said to be in difficulty. Two names are circulating: IWC in Schaffhausen and Panerai in Neuchâtel. Asked about possible measures to reduce working hours or staff, IWC management did not respond. At Panerai, we recognize that certain positions, temporary ones in particular, have not been renewed, but there have been no economic layoffs, neither at the factory, nor at the headquarters, nor on the markets. The company has nearly 260 employees in Switzerland and nearly 700 worldwide.
The management of the Richemont group, challenged by Timedid not take a position: “Unfortunately, we are not able to answer these types of questions given that we are currently in closed period as we approach the announcement of our financial results on January 16.”
Technical unemployment assumed without State support
Still in the Vallée de Joux, two Swatch Group brands are often mentioned and worry people close to the industry. These are the Breguet and Blancpain houses, which between them have nearly 1,200 employees. Questions weigh in particular on Breguet, whose staff have been technically unemployed since last summer, but without verifiable data, the group assuming this situation without going through the RHT. The group's management confirmed this point by email: “No measures of this type [RHT ou toute autre forme de réduction d’effectifs, ndlr] has not been taken nor is it currently being considered within the Group.”
Audemars Piguet constitutes the local exception. The Brassus factory is still benefiting from a promising trend, as confirmed by the executive president, Ilaria Resta, in an interview with Temps during December. However, the first signs of settling are appearing.
If we leave the Vallée de Joux, the climate also appears contrasting. Unsurprisingly, the giant Rolex confirms that it does not use RHT. Richard Mille watches, whose production is based in Les Breuleux, in the Franches-Montagnes, simply declare “not to be concerned” by this question. A matter of company size, we explain from the Paris headquarters, specifying some data: nearly 220 production employees in Switzerland, some 25 in Paris, for a production of 5,600 watches last year.
Questions remain open on the side of the French LVMH, where the entire watchmaking division is operating at low speed. But there will be no official position, other than that LVMH has decided “that no comments will be given on the implementation of RHT or unemployment”, at least with regard to TAG Heuer and Hublot.
Transparency of independents
Among the independents, the few returns obtained are diverse. At Maurice Lacroix, for example, owned by Zurich-based DKSH, with production in Saignelégier, in the Franches Montagnes, management does not report any particular arrangements: the structure has around sixty employees and “everyone works”.
Patrick Pruniaux, manager and shareholder of the Sowind group (owner of the Girard-Perregaux and Ulysse Nardin brands, in La Chaux-de-Fonds) is more transparent. The company introduced RHT in spring 2024 and confirms that the measures will be maintained. This concerns 50 employees out of the 320 who are employed in total in Switzerland. Management further provides some details on the past year: “The pace of business remained stable in the second part of 2024. In a more complex market, performances are not uniform. We have recorded a positive trend in certain markets, in the United States for example.”
Patrick Pruniaux evokes a probably similar 2025 financial year: “There remain a lot of unknowns, but I do not see any reason for a deterioration compared to 2024. We will perhaps see a recovery in the second part of the year.” Its resolution is to “clearly remain consistent with what has been built” and to keep “a long-term vision for our centuries-old brands”.
