Neo board forging “radical plans” »Leadersnet

Robert Buchbauer: “It’s about the survival of the company.”

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These are stormy times for Swarovski: The Tyrolean crystal group saw and is faced with major challenges due to the ongoing corona crisis. A comprehensive restructuring and restructuring of the company due to massive losses are out of the question, in the past few weeks clear cuts in the workforce and other restructuring measures have become known. (LEADERSNET reported among other things here, here and here).

Shrinking price and going public?

Now the new CEO of Swarovski, Robert Buchbauer, has once again stirred up the dust with statements about the next steps: “It is very painful for everyone, but we have to take the steps that we should have taken years ago,” said Buchbauer zur Financial news agency “Bloomberg”. The Neo Swarosvski board of directors wants to downsize the company considerably and is also playing with the idea of ​​going public.

However, Buchbauer’s plans met with resistance. Although he is a member of the Kristall dynasty himself, the family is said to be in danger of losing control if Buchbauer pushes through his plans for a public company and a possible IPO or a strategic partner.

Exclusivity instead of mass-produced goods

Swarovski will focus on higher quality products with a distinctive design instead of trying to offer everything for everyone. “Swarovski crystals on a ten-euro T-shirt do not contribute to our profitability and damage our brand image,” Buchbauer is quoted as saying. The new CEO also wants to reduce the number of currently around 3,000 shops.

“It’s about the survival of the company”

In July, the company announced that it would cut another 1,000 of the 4,600 jobs it currently has in Wattens in autumn. In the medium term, around 3,000 people would be employed at the headquarters. Because by 2022, the workforce is expected to decrease by another 600 positions. At the end of June, Swarovski announced that it would cut around 200 jobs in marketing and sales.

Despite regret about the job cuts, Buchbauer is sticking to the “radical course”: If Swarovski wants to have a future and maintain its status as a globally recognized brand, the company must now make painful cuts. He does not fear a family feud if one believes his statements to Bloomberg: “Bad news always creates a lot of emotions. In the end, however, it is about the survival of this company,” he is quoted as saying. (red)

www.swarovski.com

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