Players in the mid-range segment are suffering from the global economic slowdown. Breitling, famous for its Navitimer watch designed for pilots, is now facing the limits of its growth strategy.
According to Bloomberg, more than fifty positions have reportedly been cut this year at the group’s headquarters and in several international subsidiaries. The cuts are said to affect marketing, HR, and sustainability functions in particular, signaling a refocus on directly profitable activities. The American media outlet also highlights the pressure exerted by the strength of the Swiss franc and the slowdown in the global luxury market on the Swiss manufacturer’s results.
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The End of a Cycle of Rapid Expansion
This restructuring comes after several years of aggressive expansion led by German-Swiss entrepreneur Georges Kern, who took the helm at Breitling in 2017 with the support of CVC Capital Partners (which acquired 80% of the company from the Schneider family).
The brand grew from approximately 750 employees in 2017 to nearly 2,000 by the end of 2024. This rapid growth was accompanied by heavy investments: opening of boutiques, a move upmarket, international marketing campaigns, and acquisitions of historic brands such as Universal Genève (acquired in 2023) and Gallet (acquired last year).
However, the global slowdown in the luxury sector has undermined this model, which was built on strong growth momentum. Financial results showed a sharp decline: revenue for the 2025 fiscal year fell by 11% compared to the previous year, totaling 769 million Swiss francs.
The International Context at Play
On one hand, the Chinese market, the driving force behind the luxury sector for a decade, remains weak. On the other hand, in the United States, consumers are increasingly opting for more cautious and selective purchases following several years of high inflation. Finally, the strong Swiss franc automatically increases production costs for Swiss manufacturers, impacting profitability.
For Breitling, these layoffs thus appear to be the result of two factors: the widespread crisis in the luxury sector and the internal strategic realignment initiated following a period of rapid expansion. To remain competitive, the company will need to further highlight its strong identity linked to the worlds of aviation and chronographs, potentially focusing on the experiential luxury dimension that has become the watchword in the high-end sector.
Key Points:
• Breitling is reported to have cut more than fifty jobs amid a slowdown in the global luxury market and increased cost pressures.
• After several years of rapid expansion under the leadership of Georges Kern, the Swiss manufacturer is entering a phase of strategic realignment and refocusing.
• The situation highlights the growing contrast between ultra-luxury brands such as Rolex and Patek Philippe, which are reinforcing their status as safe-haven assets, and players in the mid-range segment, who are more exposed to economic turbulence.
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