Location in danger?

Swarovski crisis: from “treason” to confession

400 jobs are to be cut at Swarovski in Wattens by 2026. Some already see the beginning of the end for the site.(Bild: Birbaumer Christof)

There were great fears that capacity utilization would be low, and since Thursday the job cuts at Swarovski's headquarters in Wattens, Tyrol, have been finalized. 400 employees are to be made redundant by the end of 2026. The works council is "not entirely surprised". The Chamber of Labor, however, speaks of "betrayal of the country" and a "declaration of bankruptcy". The state is holding the Group management to account - but the latter reiterates: "The site will stay!"

"So far, the company has worked with a salami-slicing tactic and filleted the site piece by piece, now the remaining part is being put through the meat grinder in a fast-track process - and with a lack of planning that only allows one conclusion: Wattens is no longer needed as a location. This is a betrayal of the province and we will clearly side with the province and its people," ranted Tyrol's AK boss Erwin Zangerl.

"Declaration of bankruptcy for the location"
The AK President also spoke of a "declaration of bankruptcy for the strategy of the Group management and for the Wattens site as a whole". That was on Thursday morning, before the Group management publicly announced the job cuts in the afternoon. By this time, however, the employees at the Swarovski plant in Wattens had already been informed. 

400 jobs are to be cut at Swarovski in Wattens by 2026. Some already see the beginning of the end for the site.(Bild: Birbaumer Christof)

Cost pressure and decline in the luxury segment
Site manager Jérôme Dandrieux informed employees at 8 a.m. that 400 more jobs will be cut! The reasons are cost pressure and the decline in the luxury segment, especially in China. Unfortunately, 42 percent of Watten's production volume consists of crystals that other companies buy and process into jewelry. It is precisely this sector that is currently suffering the most.

Volunteers are now being sought until December 12 to reduce their hours by 10 to 15 percent. "We feel that everyone is stressed. And behind every employee is a family," explained Dandrieux. 

Wattens is our cradle, the location remains!

Jérôme Dandrieux, Standortleiter

Bild: Swarovski

"Costs millions": Night shift canceled
However, the manager reiterated: "Wattens is our cradle, the site will remain!" To underline this, it was emphasized that the investment plan (around 150 million euros by 2030) would be maintained. It is certain that the third shift (night) will be eliminated. This would cost millions. The job cuts are to 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.

Industry boss: "Another signal"
The news of further job cuts at Swarovski in Wattens also hit the industry like a bombshell. According to the Federation of Austrian Industries (IV), this is "another signal of the declining industrial competitiveness in Tyrol". However, the crisis at the production site is not an isolated case, but rather fits seamlessly into a development that IV Tirol has been warning about for years: more than 2,500 jobs have been lost in Tyrolean industry since 2023. 

What we are currently experiencing is not the result of a sudden shock, but the consequence of years of misguided developments in location policy.

Tirols IV-Chef Max Kloger

Bild: Die Fotografen Charly Lair

"The momentum of industrial development does not disappear overnight - it is gradually being eroded by rising costs, excessive bureaucracy and a lack of predictability," emphasizes IV Tirol President Max Kloger: "What we are currently experiencing is not the result of a sudden shock, but the consequence of years of misguided developments in location policy."

"Warnings not taken seriously"
However, the Tyrolean Chamber of Commerce stated that "the emphatic warnings were unfortunately not taken seriously enough". The job cuts at Swarovski are also a symbol of how much pressure Austria is under as a business and industrial location.

"When a globally active industrial company that has to assert itself on the world market makes a clear commitment to Wattens as a production location, it sends a strong signal," says WK President Barbara 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."

"Swarovski must take responsibility"
The province was also concerned by 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.

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

Head of the Works Council: shock, but also expected
How does the Works Council view the situation? "It didn't come as a complete surprise, so many are calm. Others are still shocked, it's a two-way street," said Patrick Hamberger, head of the workers' works council, to the "Krone" newspaper. It had been noticed for some time 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 that the site management is making an effort and that the (sometimes tough) discussions are at eye level. However, after 17 years of downward development in Wattens, he is skeptical as to whether the new strategies will work.