Zenith, the Swiss chronograph maker owned by LVMH, has opened talks with staff on a restructuring that could eliminate up to 200 jobs under a plan to move away from its mid-priced range and rebuild itself as a high-end watchmaker.

About 100 of the 196 jobs at its manufacture in Le Locle are affected, according to a person close to the matter cited by AFP. Reuters reported that roughly another 100 positions in international operations, mainly sales and marketing, could also go. The company confirmed only that a consultation began on Oct. 22 as part of what it called a strategic repositioning, and said it would not add detail until the process ends.

For collectors and retailers in Hong Kong, Singapore and Tokyo, the plan matters for a simple reason. The watches Zenith intends to stop making are the ones most buyers in the region actually own, and the price band it is leaving is the part of the Swiss market that has weakened most.

Zenith Drops Its Core Lines

Swiss daily Le Temps, which first reported the plan, said Zenith would abandon its main segment, whose core sits between about 8,000 and 15,000 Swiss francs, according to AFP. Hodinkee, citing an account of a staff briefing obtained by Le Temps, reported that production of familiar catalog lines including the Chronomaster, Defy and Pilot is expected to end.

The brand will instead build around its most expensive pieces. The model held up as the template is the G.F.J. Calibre 135, which won a prize at the Grand Prix d'Horlogerie de Genève and sells for just under 50,000 francs, AFP reported. The name nods to Georges Favre-Jacot, who founded Zenith in Le Locle in 1865.

Several operations will stay. Hodinkee reported that Zenith will keep supplying movements to other LVMH brands and will continue after-sales service, with more than 1 million spare parts held at the Le Locle factory. That is relevant to owners of discontinued references, who will still need servicing.

Chief Executive Benoit de Clerck told staff, in remarks obtained by Le Temps, that everyone in the mid-range segment faces an extremely difficult period and that a strong franc, U.S. tariffs and the contraction of major markets reflect a lasting shift rather than temporary turbulence, according to Hodinkee. He said the brand was choosing to recover by changing its business model at the root.

The consultation runs until Nov. 12, Hodinkee reported, and the Swiss union Unia has met employees and is taking part. The restructuring and repositioning are meant to be complete by 2029.

Pressure on Swiss Watchmakers

The cuts follow a run of weaker years for the Swiss industry. Exports peaked at a record 26.7 billion francs in 2023, then fell 2.8% in 2024 and 1.7% in 2025 to 25.6 billion francs, AFP reported, citing softer Chinese spending, U.S. tariffs and conflict in the Middle East. Only the most expensive watches kept growing. Hodinkee noted that while export value remains near record levels, the number of watches shipped has roughly halved over the past decade.

That divergence is the backdrop for Zenith's bet. Demand has held up at the very top while mid-priced brands have lost volume. Regional demand also remains uneven: recent data showed Swiss watch shipments to Hong Kong edging up in September, while exports to mainland China fell 14.2%. Hodinkee reported that the middle band has seen demand fall far enough that the Le Locle plant is running below capacity.

Zenith is not alone in trimming staff. IWC, Montblanc, Chopard and Breitling have also cut jobs, according to Hodinkee. The Swiss government has extended the period companies can claim short-time work benefits from 18 to 24 months to help firms absorb U.S. tariffs and limit layoffs, AFP reported.

What It Means for LVMH

Zenith is one of the smaller brands in LVMH's watch portfolio, which also includes TAG Heuer and Hublot. The group's Watches and Jewelry division reported 2025 revenue of 10.49 billion euros and profit of 1.51 billion euros, according to Reuters. Jewelry from Bulgari and Tiffany has carried that unit recently, and the division grew 6% organically in the third quarter.

LVMH did not immediately respond to Reuters' request for comment. Hodinkee reported broader management changes across the group's watch brands, including a new chief executive at TAG Heuer and the appointment of former Audemars Piguet chief executive François-Henry Bennahmias as a consultant to Hublot.

For buyers in Asia, the near-term effect is on supply. If production of the Chronomaster and Defy lines ends as reported, retail stock and the pre-owned market will be the main sources for those models. The staff consultation is due to close on Nov. 12, and Zenith has said it will give no further detail, including the final number of job cuts, until then.