Cartier cuts working hours
as demand dwindles
ZURICH, April 27 (Reuters) -
Richemont (CFR.VX), the world's second-largest luxury goods group
behind LVMH (LVMH.PA), is cutting working hours at its main Cartier
factory as the economic slowdown dampens demand for pricey
timepieces.
Employees in watch production at the
top-end brand will work at 40 percent for a three-month period
starting in May, a spokesman for Richemont said.
"In this way, we can retain the
staff and production flexibility whilst avoiding a build up of
finished goods inventory. We do not want to lose any of our
employees," he said.
Cartier had already introduced
shorter worker hours at its smallest factory in Switzerland earlier
this year.
Cartier has 1,100 employees in its
watchmaking operations in Switzerland, spread over three sites at
La Chaux-de-Fonds, Villars-sur-Glane and Meyrin, the Richemont
spokesman said. Swiss newspaper L'Agefi reported around 500
employees would be affected.
By 1131 GMT, shares in Richemont
had fallen 4.3 percent to 20.28 Swiss francs, underperforming a 2
percent drop in the DJ personal and household goods index
.SXQP.
Demand for Swiss watches has
tumbled in recent months as the economic crisis and looming job
losses have made consumers reluctant to splash out on luxury
treats.
Swiss watch exports dropped 26.6
percent in nominal terms compared with the same period last year,
Swiss March trade data showed, with the greatest decline in the
highest price segments. (Reporting by Silke Koltrowitz and Katie
Reid ; Editing by Rupert Winchester)