Two Swiss watchmakers have confirmed they are receiving government aid to support their employees amid a prolonged drop in demand.
Girard-Perregaux and Ulysse Nardin, luxury brands recently sold by the Kering Group, have reduced the hours of 15 percent of their workforce. The Swiss government is covering up to 80 percent of their salaries.
Last month, 40 companies, primarily suppliers of tools, machinery, or components, in Jura—one of Switzerland’s 26 cantons—requested permission to reduce their employees’ hours.
The Sowind Group, which owns Girard-Perregaux and Ulysse Nardin, is the first known watchmaker to secure government assistance.
Luxury watchmakers often cut production when demand falls but aim to retain their skilled staff.
Swiss watch exports fell by 7.2 percent in June, marking the largest decline of 2024, according to the Federation of the Swiss Watch Industry Exports (FHS). Although exports rose by 1.6 percent in July, they dropped by 32.8 percent in China, Switzerland’s third-largest market for watches.
