"Fluctuations"

Is Swarovski facing another wave of redundancies?

(Bild: Thomas Böhm)

After four years of losses in the triple-digit millions in some cases, the crystal group Swarovski, based in Wattens in Tyrol and Männedorf in Switzerland, will return to profit for the first time in 2024. Nevertheless, the current business is burdened by numerous problems.

"We will be fully profitable including the restructuring costs," a spokesperson confirmed to the magazine "trend". The crystal business turned over 1.83 billion euros in 2023 and recorded a positive operating result, but the bottom line was negative due to the high restructuring costs. There are several problems at the same time.

We are committed to Wattens in the long term, and this means that we will secure the financial sustainability of the site in view of market developments and the significant cost increases in Austria, unlike in other parts of the world. Of course, this must go hand in hand with continued fluctuations in the number of employees.

Ein Sprecher von Swarovski

From 3000 to 2200 jobs?
Sales in China, which account for 20 percent of Swarovski's turnover, will be 16 percent down on the previous year in 2024. The industrial business (B2B) with components for the fashion and automotive industries, for example, is also suffering. This is particularly relevant for the headquarters in Wattens, where the B2B threads come together.

While the number of employees in Wattens was recently stated as 3000, according to "trend" there are plans to reach a corridor of 2,200 to 2,500 in the medium term.

Group answers evasively
Swarovski does not comment on this figure, but responds evasively to a "trend" inquiry: "We are committed to Wattens in the long term, and this means that we will secure the financial sustainability of the site in view of the market development and the considerable cost increases in Austria, in contrast to other parts of the world. Of course, this must be accompanied by continued fluctuations in the number of employees."

According to "trend", there are also plans to optimize space through digitalization and automation of production and to open the company premises in Wattens to third-party companies - a plan that the company does not deny.

Another spokesperson seeks reassurance
In an interview with the "Krone" newspaper, another spokesperson is seeking reassurance regarding any redundancies. He emphasized that "this summer we were already talking about a normal fluctuation of around ten percent". He continued: "Excluding the restructuring costs, the company was already profitable in 2023 and we are striving to maintain this value creation momentum in 2024, when we will be fully profitable including the restructuring costs."