class=”sc-29f61514-0 icZBHN”>
Hero, Flyer, Google, Estée Lauder, Nestlé, Sympany or Dormakaba; As different as these companies are, they have one thing in common: They’ve announced mass layoffs in the past few weeks. In total, they are laying off more than 1,500 people. More than 1,500 people are losing their income and unions are in revolt.
This development is surprising because there have always been claims that there is a shortage of skilled workers and how important it is to retain employees. The question arises as to why so many companies are making layoffs. An explanation for the current uncertainty in the markets may be found: “The business climate has been deteriorating for months,” says Davide Villa, CEO of the Jobcloud company that operates the Jobs.ch portal, among other things. He says this in terms of the war in Ukraine, the crisis that has erupted in the Middle East, the ongoing inflation, and also the looming danger of economic stagnation.
The economy is growing below average
Since the end of March, economic agencies have been reporting on the economic downtrend, KOF is worried and Seco is making headlines with its economic forecast that “the Swiss economy will grow significantly below average in 2023 and 2024.”
Daniel Löhr, co-owner of the recruitment company E-Selection, also observes that these forecasts affect companies: “Uncertainty is present everywhere and companies are experiencing high cost pressure. That’s why they are now making delayed adjustments to productivity.” But this is not a new phenomenon. There was an increase in mass layoffs in Switzerland in 2009 and 2012. “We are not used to this today,” says the expert on experts and managers.
“It wakes people up.”
Löhr also sees the weak economy as an opportunity: “It helps people wake up. Because even though it may seem that way sometimes: owning a business is not something you are born with.” Conversely, people being laid off also means they need to further develop their skills to find a new job. And Löhr believes they will find them: “Highly educated jobs will remain in Switzerland in the long term; it’s just that the requirements for the desired skills will always be readjusted.”
The box below shows which companies have already restructured their requirements and taken appropriate action. Here “Handelszeitung” lists which companies have announced layoffs and how many employees are affected by the layoffs.
October
October 13: Nestlé
Nestlé announces its latest wave of layoffs. The factory location in Wangen, Olten, where mainly Leisi and Buitoni products are produced, was affected. The food company announced that nearly half of the current 200 layoffs will be made by mid-2024. The products themselves should not disappear, but with the reorganization the Vevey-based company is focusing on product innovation.
October 12: Symphony
Basel health insurer Sympany is in a cost trap and is therefore embarking on a path of draconian austerity. The statement from the insurer dated October 12 shows that 74 positions will be closed. This affects 63 employees who will lose their jobs as a result. Sympany confirmed this to the Muula.ch platform. Almost 12 percent of the workforce will be lost at once.
October 10: Dormakaba
Locking technology group Dormakaba announced a comprehensive savings and transformation program in July. It has been announced that 160 people will lose their jobs as a result, regardless of fluctuations. The company announced that this decision affected 183 employees. However, there will be no closure of any facility or production. The dismantling process must be done within three years.
October 9: Estée Lauder
Clear cut at Estée Lauder: The American cosmetics company is reviewing its structures. As a result, 40 employees will be laid off. They were part of the 220-strong workforce of the factory in Lachen, Schwyz. Positions in distribution and manufacturing will be eliminated.
September
September 29: St. Gallen Hospitals
St. Gallen hospital network is experiencing a clear outage. The association plans to cut 440 jobs out of a total of 9,000 across four locations in the coming months. This was confirmed in a statement from the organization. The association cited the poor financial situation as the reason. St. Gallen hospitals need to save around 60 million francs a year in the medium and long term, which would not be possible without layoffs.
September 23: Google
Google’s parent company, Alphabet, announced 12,000 layoffs worldwide as early as January 2023. This situation also affected Switzerland: About 250 people were laid off in Zurich. Now there will be more, because financial blog “Inside Paradeplatz” was the first to know. Google is laying off its recruiting team (HR) in Zurich, closing 43 positions at once. The company denied rumors that this number would increase to 500 employees by the end of the year.
September 20: TX Group and Tamedia
There is turmoil in the media industry. TX Group has announced that it will cut up to 28 jobs at its subsidiary Tamedia in western Switzerland. This amounts to more than 10 percent of the workforce. The next piece of information for German-speaking Switzerland came shortly after. We were talking about eliminating 20 jobs. The Zurich-based group justifies the restructuring with weak sales development in the region, SDA news agency reported. The company is laying off around 50 people across Switzerland, media and communications union Syndicom wrote. Many are freelance journalists.
September 20: Hero
Traditional company Hero is considering closing its jam packaging factory in Aargau, Lenzburg. The 55 employees who would be affected were invited to a consultation meeting on the future of the production facility on the same day. The goal is to “make the best possible business decision,” the statement says. According to the company’s website, the Hero food group employs around 4,000 people across five continents. Approximately 200 people currently work in Lenzburg.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
September 14: Brochure
The numbers increased rapidly due to dozens of people buying motor bikes during the Corona period. This wave looks set to come to an abrupt end at Flyer: The e-bike maker announced on September 14 that it was reviewing the reduction of up to 80 jobs. This accounts for almost a quarter of the workforce. The company, headquartered in Huttwil, Bern, cites the difficult market situation in the industry as the reason for this decision. The Corona boom in the cycling industry in general seems to have abated; Children’s bike maker Woom is also struggling with weak figures. However, there will be no layoffs at Woom.
September 11: International Committee of the Red Cross
The International Committee of the Red Cross (ICRC) was forced to make layoffs at its headquarters in Geneva. In its statement, the aid organization announced that it would reduce its staff by 270. But the Red Cross needs to cut jobs not just in Switzerland but around the world. However, the company cannot yet say how many of these will be effective.
July
July 13: Flava
The layoffs at Flawa Consumer GmbH in July were probably a harbinger of what will happen in September: The company, which produces all kinds of protective masks, laid off 49 of its 67 employees. Some faith in employees: After management takes over, seven more positions can be retained thanks to a new layout.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
