For the first time since the global luxury watch market’s post‑pandemic rebound, Switzerland’s storied watchmaking sector has recorded a decline in employment, industry data shows — a stark reminder that even the world’s most revered timepiece industry is not immune to broader economic pressures.

According to the Employers’ Convention of the Swiss Watchmaking Industry (CP), employment in the Swiss watch sector fell by approximately 1.3% in 2025, a reduction of about 835 roles compared with the previous year, marking the first yearly decrease since the post‑Covid recovery period.

The total workforce now stands around 64,807 employees, down from figures that had previously remained above the 65,000 mark for several consecutive years. Regional disparities were evident: traditional horology hubs such as Vaud, Neuchâtel, Jura, and Bern experienced sharper declines, while the Geneva region bucked the trend with modest employment growth.

Industry leaders and analysts attribute the downturn to a confluence of factors impacting global demand. Sluggish consumer spending in major markets, particularly in Asia, coupled with ongoing global economic uncertainty, have dampened export volumes. Swiss watch exports — a bellwether for industry health — have softened in recent months in response to these pressures.

To mitigate the impact, many companies have made extensive use of Switzerland’s short‑time work support program, which effectively allows firms to reduce hours while retaining skilled labor. The program, extended several times by federal and canton authorities, has kept layoffs relatively contained, but its eventual expiration could intensify workforce pressures if current conditions persist.

The downturn in watchmaking employment stands in stark contrast to the sector’s rapid growth earlier in the decade, when record‑high demand and a near‑insatiable appetite for mechanical luxury watches fueled expansion and hiring across the supply chain. Those gains now appear to have given way — at least temporarily — to caution and retrenchment.

Industry observers warn that if global sales remain subdued, structural adjustments might be necessary, including further reductions in production capacity or shifts in operational strategy. For smaller suppliers and component manufacturers especially, a prolonged slowdown could challenge long‑term viability.

Despite the uncertainties, industry figures emphasize the importance of preserving artisanal talent and maintaining Switzerland’s unique horological expertise. Whether this recent dip will mark a deeper contraction or a temporary correction remains an open question — but for now, the jobs data highlights a sector grappling with a changing global marketplace.

-D.Sikoff