Movado Group To Enact Cuts

The Movado Group has announced a plan to improve efficiency, which will be achieved through a combination of payroll cuts, consolidation of company functions, and a reduction in discretionary spending.  Movado anticipates an annual savings of $25 million, as a result of these actions.  The plan, announced on August 7, comes on the heels of a comprehensive analysis of the Group's current cost structure.

“Streamlining our organization is a difficult decision, because it impacts the people who have contributed to Movado Group,” said Efraim Grinberg, President and CEO of the Movado Group. “We’re extremely grateful to each of our employees and are very proud of their many contributions to the company.  However, it’s necessary to make decisions that not only respond to the current challenging economic environment, but also strengthen the Movado Group for the long-term.”

To gain a payroll reduction of approximately 10 percent, around 90 of the Movado Group's full-time positions will be cut, dispersed across corporate and shared-service sectors in both the Group's European and North American operations.  Employees affected by the job cuts will get severance packages and assistance with career transition.  

“Our actions are creating a stronger and leaner organization that will operate more efficiently,” stated Grinberg. “A streamlined cost structure will allow the company to be more nimble, as it responds to current market conditions, while capitalizing on future growth prospects, as the economy recovers."

The Movado Group's headquarters are in Paramus, New Jersey.  In addition to the manufacture and distribution of Movado watches and the operation of exclusive Movado boutiques and sales points, the watch conglomerate also owns and controls a number of other fashion or luxury watch brands including Tommy Hilfiger, ESQ, Coach, Hugo Boss, Ebel and Concord.