Swarovski Announces Layoffs
Posted on March 27, 2009
Swarovski is laying off another 600 people at the factory in Wattens, Austria. The move is due to the recession and reduced demand for jewelry and accessories which use Swarovski crystals. The company is moving quickly to make sure that it survives the downturn.
Swarovski executive board member Markus Langes-Swarovski told WWD, "From a business perspective, to ignore the present general conditions would be irresponsible. After careful examination we have therefore decided on a plan of action for the [lasting] security of our market leadership and for the business location in Wattens."
Swarovski is certainly not alone in the luxury world which has been hit hard by the downturn. WWD says Swarovski still employs nearly 24,000 worldwide.
Update: Swarovski shareholders approved another 6,000 job cuts in 2020 according to Bloomberg.
Swarovski has been hurt by low-cost crystal production which comes out of Egypt and China. Swarovski says that is will stay as a brand base in Austria, even though it is opening a new plant in China to create a lower-end line of crystals under a different brand name. The better-made Swarovski crystals will continue to be based in Watten, where the company has been based since 1985.
Swarovski does offer something amazing that its competitors lack. This is the crystal-themed museum at is headquarters in Wattens, Tyrol called Swarovski Kristallwelten (Swarovski Crystal Worlds). Take a look: