Hard times

Job cuts? Dark clouds over Swarovski

No more "sunny" times in Wattens. Dark clouds are gathering once again.(Bild: Christof Birbaumer)

Times have been rosier in the past - even at the Tyrolean crystal giant Swarovski. For years, the company has been struggling with severe turbulence, both in terms of the Group management and the economic situation. On Thursday, the site management announced that a further 400 of the current 2480 jobs will have to go by the end of 2026. However, major investments are to be made in Wattens until 2030. 

There is no end to the anxiety at Swarovski's headquarters in Wattens, Tyrol (district of Innsbruck-Land). Jobs have been gradually being cut for a good two decades now. In its heyday, the world-famous crystal company had more than 6000 employees. Currently there are still just over 2500 - but it will soon be heading towards the 2000 mark.

Job cuts by the end of 2026, volunteers ahead
On Thursday afternoon, the Group management confirmed that 400 more jobs will be cut at the headquarters in Wattens! The reasons are cost pressure due to high wages and the decline in the luxury segment, especially in China. Unfortunately, 42 percent of the production volume in Wattens consists of crystals that other companies purchase and process into jewelry. It is precisely this sector that is currently suffering the most.

"We feel that everyone is stressed"
The jobs would have to be cut by the end of 2026, it said. By December 12, 2025, volunteers will be sought to reduce their working hours by 10 to 15 percent. If this is not enough, redundancies will have to be made. Employees were informed on Thursday from 8 a.m. onwards. "We feel that everyone is stressed. And behind every employee is a family," explained site manager Jérôme Dandrieux in a press conference called at short notice. Despite all fears, the manager reiterated: "Wattens is our cradle, the site is here to stay!" If nothing had been done, "even more difficult decisions" might have to be made in a year's time. It is certain that the third shift (night shift) will be eliminated.

Details of the redundancy plan announced
The reduction of 400 jobs will be made up of the aforementioned volunteers, retirements and the usual fluctuation. Those who leave or have to leave will receive two to seven months' salary. In addition, 11,000 euros per person affected will flow into a training fund. The funds will be provided by Swarovski alone - i.e. without public assistance, it was emphasized.

The cradle of the crystal group and the Wattens site are to remain, is the promise.(Bild: Christof Birbaumer)

Works Council: doubts as to whether strategies will work
How does the Works Council view the current situation and the job cuts? "It didn't come as a complete surprise, so many are calm. But others are still shocked, there are two sides to it," said Patrick Hamberger, head of the workers' works council, to the "Krone" newspaper. For some time now, it had of course been noticed that there was "hardly any work". The switch to two shifts has now had serious changes for many - "for example, they are no longer covered by the heavy labor regulation, with all the consequences for their pension". He attests to the site management's great efforts. However, after 17 years of downward development in Wattens, he is skeptical as to whether the new strategies will really work. Once again, the site management emphasized that they will continue to invest, namely 150 million euros by 2030. 

"When a globally active industrial company that has to assert itself on the global market makes a clear commitment to Wattens as a production location, it sends a strong signal," says Tyrol's WK President Thaler: "All the more so when, despite all the disadvantages and hurdles of the location, massive investments of 150 million euros will be made over the next five years to maintain technology leadership and innovation in Austria."

At the headquarters in Wattens, there is - once again - anxiety. What will happen next?(Bild: Christof Birbaumer)

AK boss: "This is a declaration of bankruptcy"
The Tyrolean Chamber of Labor already went on the barricades on Thursday morning due to the reported staff cuts: "The number could rise to 500 if the majority of the remaining workforce does not agree to the reduction in working hours sought by the Group management," it said in a press release.

As feared, it is clear that the Group management's commitment to the site was merely lip service, and the future of Swarovski in Wattens is uncertain.

AK-Präsident Erwin Zangerl

Bild: Johanna Birbaumer

Tyrol's AK boss Erwin Zangerl spoke of a "declaration of bankruptcy for the strategy of the Group management and for the Wattens site as a whole". "It is clear that the commitment to the site made by the Group management was, as feared, merely lip service, and the future of Swarovski in Wattens is uncertain."

Zangerl called on the Group management to finally speak plainly. After all, "the federal and state governments have repeatedly supported Swarovski for decades with a lot of taxpayers' money and helped it out of numerous crises."

"Swarovski must take responsibility"
The province also expressed its concern following the announced job cuts: "It is a heavy blow for all affected employees, for the market town of Wattens and the province of Tyrol. We are very concerned about the development at the Wattens site," said Astrid Mair (ÖVP), member of the provincial labor council, in response to the bad news. The company must now take responsibility.

We call on Swarovski to take responsibility.

Arbeitslandesrätin Astrid Mair (ÖVP)

Bild: Christof Birbaumer

"A social package for those affected and support from a company foundation are urgently needed signals that must come from the company," demanded Mair.

Together with State Economic Councillor Mario Gerber (ÖVP), Mair is also already in consultation with the social partners, the AMS and the Arbeitsmarktförderungs GmbH (amg-tirol) to determine what further measures can be offered to the affected employees. 

Background discussion on Thursday
Swarovski itself initially made no statement. However, a background meeting was held on Thursday afternoon to provide official information about the new, impending staff cuts. One of the aims of the meeting was to "create clarity and explain the background", according to the statement.

Crystal business with slight increase in sales in 2024
In spring, the Group's management had still reported positive news. Sales in the 2024 financial year rose from EUR 1.8 billion to EUR 1.9 billion compared to the previous year. The management was particularly satisfied with the development in Austria and America, where "record sales were achieved", it said. The year 2025 will be challenging, it had already been said at the time. 2026 is unlikely to be any better.