The Swarovski Group, a jewelry manufacturer, laid off 122 workers at its Cranston facility Thursday as part of the company’s restructuring efforts in the United States. The layoffs affected all organizational levels including jewelry manufacturing, shipping, sales, design, marketing and support functions.
The job cuts are part of the Austria-based company’s restructuring approach in the United States as it looks to cut back its department store distribution in favor of independent specialty retail stores and its company-owned stores. Some of the company’s merchandise will still be offered through department stores.
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Swarovski, mostly known for its crystal products, will still employ 485 people in Rhode Island and will retain some jewelry manufacturing in Cranston, supporting approximately 25 percent of jewelry products sold in the country. The company also laid off 24 more people who work in its North American Consumer Goods Business for a total of 146 layoffs, the company said in a press release.
Other areas affected by the layoffs included field representatives around the country.
Daniel J. Cohen, Swarovski U.S. Holding Ltd. president, said while the company regrets the job losses, he expects it to continue to add jobs as it pursues expansion of its distribution strategy, including further growth in its own specialty retail businesses from 53 stores today to 63 by year’s end. He also noted that Swarovski offered severance packages to those who were laid off.
The company said the restructuring involves a different approach to its U.S. fashion products business.
“The shopping habits of the American consumer for fashion-related items have changed considerably in the last several years,” Cohen said in the release. “More and more, we’re seeing our target consumers shop for fashion items at specialty retail stores and discount stores as opposed to traditional department stores. … The department store business model fails to meet our brand development and profitability goals.”
State Department of Labor and Training representatives were dispatched to the Cranston facility Thursday morning, distributing applications for unemployment insurance benefits to affected workers, per order of R.I. Gov. Don Carcieri, according to a press release issued by the governor’s office.
The governor’s release said the state is working with other Rhode Island jewelry manufacturers that may be expanding operations to determine if qualified workers laid off from Swarovski can be placed in new jobs in the state.
According to the release, the Rhode Island Economic Development Corporation has been working with Swarovski to ensure that the state remains a unit of the company’s global business operations. EDC is also discussing with the company that Rhode Island is positioned to benefit from any new jobs that may be added in the future.
The Swarovski Group is a 109-year-old company that employs 13,000 people worldwide.
