Macy's and Swarovski joining forces, while mutually beneficial, is not entirely positive for the workforce of both companies. Following the restructuring, the two brands have decided on a streamline involving the loss of 3,900 jobs and 600 jobs from both Macy's and Swarovski respectively.
The job cuts in Macy's covers all branches including corporate, customer service, supply chain management divisions as well as store management. Macy's chairman and chief executive officer Jeff Gennete said in a statement that he will be in charge of “a smaller company for the foreseeable future. “While the reopening of our stores is going well, we do anticipate a gradual recovery of business.”
Another loss in Macy's ranks include chief brand experience officer Rachel Shcechtman making her departure. She came on board back in 2018 when Macy's bought her experiential retailer Story.
Swarovski's 600 job cuts will hit marketing and sales the hardest with 200 of those losses taking place at company headquarters in Wattens, Austria. The streamlining of the companies comes after the appointment of Robert Buchbauer to the chief executive officer of Swarovski back in April. He is leading the charge in the restructuring, having previously managed a large portion of the crystal business for over a decade.
Buchbauer's philosophy shifts importance unto both a smaller number in operations. At the moment, Swarovski sells watches with a range of prices up to $400. Under $200, one can purchase a stainless steel Cosmopolitan watch with crystal embellishments. Before the COVID-19 shutdown, the company has said that during that time approximately 29,000 people were employed and annual sales reached around 2.7 billion euros.
The company said in a recent statement involving the job cuts that, “Swarovski is currently realigning its business along a new vision and growth strategy and with this, fundamentally changing its existing organizational structures and business model. To this end, all business processes, activities and fields of activity worldwide are currently being reviewed to ensure that they are in line with both the strategic realignment and economic reality. As a first step, the marketing and sales activities that were previously spread across various business 8units are being merged and streamlined.”
Information originally sourced from WWD.