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For weeks, companies across Switzerland have been making headlines with large-scale layoffs. Recently textile machinery manufacturer Rieter laid off up to 900 people. St. Flawa, a mask manufacturer in St. Gallen, announced in August that it would lay off 49 of its 67 employees.
In September and October, events occurred in rapid succession: Huttwil BE-based e-bike manufacturer Flyer laid off 80 of its 300 employees. Galderma, known for its daylong sunscreen, is laying off 97 of its approximately 500 employees in Zug and Lausanne. Cosmetics company Estée Lauder is laying off 40 of its 220 employees at Lachen SZ. In key technology producer Dormakaba, 183 out of 930 jobs in this country are falling victim to the hammer of austerity; At the Basel health insurance company Sympany, 74 out of more than 600 jobs are affected. St. Gallen hospital network is laying off 440 out of 9,000 people. Confit manufacturer Hero’s 50 out of 200 jobs at its headquarters in Lenzburg AG will be eliminated.
But there is no need to be pessimistic: According to the latest figures of the Swiss Labor Market Index, 7 percent more job advertisements were published in all professions in the last 12 months. The index is published by recruitment agency Adecco in collaboration with the University of Zurich. The number of advertisements in the mechanical, electrical and metal sector (MEM) has increased significantly.
No recognizable pattern
There also seems to be a lack of a clear pattern in many mass layoffs: Companies from a wide range of industries are affected. The reasons for layoffs also vary greatly depending on the situation.
In the case of e-bike pioneer Flyers, those in charge very optimistically predicted future market growth, while at the same time sales have fallen significantly over the past two years. Now the big correction is happening.
A cluster risk occurred at Flawa Consumer GmbH: From one day to the next, a large order covering more than half of sales was lost. The company needs to lay off most of its staff to think ahead.
The economic situation affects companies
Some jobs at Dormakaba, one of the world’s three largest bowl manufacturers, are being moved to Sofia, Bulgaria. Switzerland is becoming an increasingly expensive destination for industrial companies. “The strong franc and weak economy in major recipient countries such as Germany are affecting the sector. So I assume the sector is losing weight,” Roger Reist (47), Head of Treasury and Markets and Institutional Clients and member of the Raiffeisen Switzerland management team, told Blick in mid-September.
Cosmetics manufacturer Estée Lauder, which wants to “optimize” its operations in Lachen, is also suffering from high production costs. Textile machinery manufacturer Rieter is suffering from decreasing order intake.
Galderma justifies this reduction with the difficult economic environment of inflation, delivery bottlenecks, geopolitical instability and rapidly rising interest rates. But the company is currently planning Switzerland’s biggest IPO of this millennium and is therefore facing accusations that it is trying to improve its numbers for investors.
Growth well below average
Basel health insurance company Sympany made a loss of 61.5 million francs last year and has now had to pull the emergency brake. The difficult financial situation also affected St. Gallen is also pushing the hospital network to take extensive cost-cutting measures.
The economic environment remains tense. The State Secretariat for Economic Affairs (Seco) assumes that the Swiss economy will grow well below average in 2023 and 2024. So it is likely that other companies will also get the red pen. At the same time, there are still many companies creating new jobs.
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.
