Zenith Restructuring: LVMH Brand Cuts Jobs, Output
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Zenith’s LVMH Ownership and the Consultation Process
Zenith, owned by LVMH, is undergoing a major restructuring and repositioning as a high-horology, low-volume watchmaker. The plan includes job cuts and a production reduction, according to Hodinkee. CEO Benoit De Clerck addressed employees at company headquarters this week to announce the reset. The report, written by Andy Hoffman and dated October 23, 2026, says Zenith management confirmed that a staff consultation process began Thursday over a proposed strategic repositioning of the house. Hodinkee also notes that Le Temps reported on the restructuring Thursday and obtained a transcript of De Clerck’s address.
A Zenith spokesperson said the company will refrain from providing further information until the consultation process has been concluded. Management and executives are in a formal consultation with employees over the next three weeks to negotiate the terms of the restructuring and job cuts. Unia, the Swiss employees’ trade union representing workers at the manufacturer, will meet with employees next week and join management in the consultation process.
Job Cuts at Le Locle and the 2029 Target
As many as 100 jobs could be eliminated at Zenith’s Le Locle manufacture, about half the workforce there, according to Hodinkee. Another 100 positions may be eliminated, including the entire international team, to complete the reorganization by 2029. The proposed cuts are part of the broader reset at the Le Locle site, where the brand was founded by Georges Favre-Jacot in 1865. LVMH acquired Zenith in 1999.
Financial Losses and the Mid-Tier Challenge
Zenith has racked up financial losses in recent years, and its watches sit in a mid-tier range of CHF 7,000 to about CHF 12,000. De Clerck described the segment as mid-range and said the industry is going through a very difficult period. He cited the strong franc, US tariffs, and declines in key markets such as the Middle East and Asia. The CEO said the situation is not a passing patch of turbulence, adding that it is “a market that has changed for the long term.”
Production Shift to Haute Horology
Zenith is expected to cease production of many core catalog models, including the Chronomaster, Defy, and Pilot lines. The brand plans to focus on haute horology product lines similar to its GPHJ award-winning GFJ models. For context on Zenith’s chronograph lineage, the Zenith El Primero Sport history covers an earlier era.
Movement Supply, After-Sales, and Component Stock
Zenith will continue supplying movements to other LVMH brands such as Tiffany, Hublot, and Bulgari. After-sales operations and services will continue to function, and the brand stocks more than 1 million components at its Le Locle facilities.
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Away from the corporate changes, Watchdle offers a watch-identification game for readers who want to test model recognition.
FAQ
How many Zenith roles could be affected by the restructuring?
As many as 100 jobs could be eliminated at the Le Locle manufacture, about half the workforce there, according to Hodinkee. Another 100 positions may be eliminated, including the entire international team, to complete the reorganization by 2029.
Which Zenith lines are expected to stop production?
Zenith is expected to cease production of many core catalog models, including the Chronomaster, Defy, and Pilot lines. The brand plans to focus on haute horology product lines similar to its GPHJ award-winning GFJ models.
Will Zenith continue supplying movements and after-sales?
Yes. Zenith will continue supplying movements to other LVMH brands such as Tiffany, Hublot, and Bulgari. After-sales operations and services will continue, and the brand stocks more than 1 million components at its Le Locle facilities.
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