Articles and News

Merrick, NY—Layoffs have been mounting in the luxury and retail worlds.

Last week, Richardson, TX-based Fossil Group reportedly laid off 100 people, about 10% of its workforce, and has instituted pay cuts for remaining employees. The company’s watch brands include Fossil, Michele, Skagen Denmark, Relic, Misfit, BMW, WSI, and Zodiac.

An online message board said “Kosta [Kartsosis, chairman]’s email confirmed layoffs will begin Monday [June 29].” Anonymous employee comments said the email stated U.S. jobs would be impacted; it’s not known if only U.S. positions are being cut. The company already had announced layoffs in February and it cut another 222 employees in April when the pandemic shutdown shuttered “substantially all” of its Dallas distribution site. At the time, the Dallas Business Journal reported the company hoped those layoffs would be temporary.

Swarovski, the Wattens, Austria-based crystal and gemstone brand, has announced it will lay off 600 employees, or about 2% of its total global workforce of about 34,500. The company cited a massive decline in sales, especially in Asia and the United States, since the pandemic began. Robert Buchbauer, the company’s new CEO and a great-great grandson of founder Daniel Swarovski, is looking to streamline the company. As part of that objective, it merged several departments and realigned its top management, including a greatly diminished role for Nadja Swarovski, the globally-recognized face of the company and Buchbauer’s cousin.

Macy’s recently announced the elimination of 3,900 corporate and management jobs, in addition to previously-announced staff cuts in its stores, customer service, and supply chain. The latest move is expected to save $365 million this fiscal year, and about $360 million in subsequent fiscal years, Bloomberg reported. CEO Jeff Gennette said the company will be smaller for the foreseeable future. On Wednesday, the company announced a first-quarter loss of $3.6 billion.

Finally, luxury auctioneer Sotheby’s furloughed 200 employees, about 12% of its global workforce of 1,700 in April, says the Wall Street Journal. Those who weren’t furloughed had their pay cut 20% through June 1; top executives took an additional 10% pay cut. The auction house has shifted all its sales online or privately since the pandemic forced closure of its offices and auction rooms worldwide in March.