Why Job Cut Announcements Are Increasing in Switzerland

The outlook is taking a turn for the worse in the Swiss labour market. In the space of just a few months, companies operating in the electric aviation, telecoms, food delivery, electronics and media sectors have announced job cuts. Although the circumstances vary greatly, they all point to the same reality: when profit margins shrink, markets change or traditional revenue streams dry up, employment quickly becomes a variable to be adjusted.

For SME managers, self-employed employers and HR managers, the stakes go beyond simply reading the economic climate. A wave of announcements does not mean that the entire market is shifting, but it does require a review of one’s own indicators: order books, cash flow, profitability by business line, reliance on a few key clients, and the ability to retain key skills. In Switzerland, reducing staff numbers is not simply a management decision: once certain thresholds are reached, the legal framework imposes specific procedures.

From Sion to Fribourg, the cuts are no longer confined to a single sector

The list of recent announcements shows that the pressures are not confined to a single sector. H55, a Sion-based start-up specialising in electric propulsion systems for sustainable aviation, announced on 25 June 2026 a restructuring resulting in the loss of 54 out of 110 jobs. The company says it is refocusing on the defence, drone and hybrid aviation markets. This case speaks for itself: even in sectors perceived as promising, business performance, funding requirements and strategic positioning can force a sudden change of direction.

In the telecoms sector, Sunrise announced on 5 February 2026 the loss of 147 jobs, mainly in senior management roles, as part of a reorganisation aimed at improving efficiency. The redundancies took place in February and March 2026. Here, the message is different: it is not necessarily a decline in business visible to customers, but rather a drive for internal streamlining, often linked to cost pressures, organisational duplication or a desire to shorten decision-making processes.

The most significant blow cited in recent announcements concerns Smood. The Geneva-based meal delivery company ceased trading on 30 April 2026, resulting in the redundancy of its 427 employees. According to available information, the closure is linked to the company’s inability to remain economically viable in a highly competitive market. For many SMEs, this serves as a stark reminder: high commercial visibility is not enough if the business model cannot sustainably cover operating costs.

The manufacturing sector has not been spared. Elma Electronic, a Zurich-based manufacturer of electronic components, announced on 15 April 2026 that it would be cutting 100 jobs – 12 per cent of its workforce – with 50 redundancies scheduled for April and May. The stated aim is to reduce costs and improve profitability. In the media sector, too, the pressure is mounting. Saint-Paul Médias, publisher of La Liberté amongst others, has scaled back its planned staff cuts to 13.5 full-time equivalents instead of the 18 initially envisaged, following a consultation process. Fifteen redundancies are to be made, mainly in the editorial and marketing departments, with a redundancy plan currently being drawn up.

A slowdown coinciding with a shortage of suitable candidates

There is something paradoxical about the current situation. On the one hand, jobs are disappearing. On the other, many companies continue to struggle to recruit. A study by AXA published in 2024 noted that more than half of Swiss SMEs were finding it difficult to fill vacant posts. For an employer, this changes the way they approach restructuring: cutting a post today may ease the strain on the budget, but losing a rare skill set could prove costly when it comes to reviving the business.

This mismatch often stems from a lack of alignment between the profiles available and companies’ actual needs. The roles that are cut do not always correspond to the roles that are in demand. A company may cut back on administrative or managerial roles whilst still lacking technicians, digital specialists, qualified sales staff or employees capable of managing complex processes. For an SME, therefore, the careful management of skills becomes just as important as monitoring wage costs.

Before making cuts, it is worth distinguishing between several categories: roles that have become structurally redundant, roles that are temporarily under-utilised, skills that can be transferred to another area of the business, and critical functions the absence of which would weaken the company. This analysis is not solely an HR matter. It also concerns cost accounting, margins per product or service, seasonality, cash flow forecasts and contractual commitments. A decision based solely on gross salary may fail to address the full scope of the problem.

Extended short-time working: a safety valve to consider before making redundancies

Faced with a difficult economic climate, the Federal Council decided on 27 May 2026 to extend the maximum period for receiving short-time working allowances from twelve to twenty-four months, until 31 January 2027. Reduced working hours, often referred to by the abbreviation RHT, aims to help businesses facing a temporary downturn in activity retain their staff rather than making immediate redundancies.

For an SME, the potential benefit is clear: retaining expertise, avoiding an abrupt break with staff and maintaining the capacity to bounce back if orders return. However, RHT is not a one-size-fits-all solution. It assumes that the difficulty is temporary and that the company can provide evidence of its situation. It must be considered with caution, particularly in light of the business’s sector, current contracts, deadlines, the relevant canton and the conditions applicable to the specific case.

The extension decided by the Confederation does, however, send a signal: the authorities recognise that some companies need more time to get through the current phase. For accountancy firms, finance managers and SME management teams, this argues in favour of early discussion. Waiting until cash flow is under maximum pressure limits the options available. It is better to model several scenarios: a moderate fall in turnover, a prolonged downturn, the loss of a major contract, the postponement of investments or a transformation of the business model.

Collective redundancies: thresholds that should not be discovered too late

In Switzerland, collective redundancies are subject to specific criteria. According to Article 53 of the Employment Service Ordinance, a redundancy is considered collective if it affects at least 10 employees in companies with between 20 and 100 staff, at least 10 per cent of the workforce in companies employing between 100 and 300 staff, or at least 30 employees in companies with more than 300 staff. These thresholds can be reached more quickly than one might imagine, particularly in a medium-sized company or in a severely affected operational unit.

The employer must notify the relevant cantonal authority of these redundancies as soon as possible, but no later than when notice is given. The research dossier also points out that the implementation of a social plan is recommended to mitigate the economic consequences for those affected. In practice, announcing a restructuring also hinges on communication: the timetable, the consistency of the reasons given, how the affected employees are treated, keeping the remaining teams informed, and relations with the social partners where they are involved.

The example of Saint-Paul Médias illustrates the role of consultation and social negotiation. The group had announced its intention to cut 18 full-time equivalent posts, before reducing this figure to 13.5. Those affected are to benefit from a redundancy plan negotiated with staff representatives and the trade unions after the summer holidays. For an SME, even where formal obligations vary depending on size and circumstances, the approach matters: a poorly prepared restructuring can damage the company’s reputation, affect the motivation of the remaining staff and strain relations with customers.

For SMEs, the real issue is how quickly they can anticipate developments

Current announcements should not cause panic, but rather prompt preparation. A company that is slow to monitor its key performance indicators risks being left with only defensive measures at its disposal. Conversely, a management team that identifies loss-making areas, redundant tasks or under-utilised skills at an early stage can take a more gradual approach: internal reorganisation, training, staff mobility between teams, cutting certain expenses, renegotiating deadlines, adapting the product or service offering, or considering a temporary lay-off scheme when the conditions are met.

The key task is to link the figures to the people. A salary dashboard should not merely add up costs: it should show which roles generate revenue, which underpin operations, which mitigate risks and which could be developed. In a small organisation, an employee often takes on several roles that are not visible on the organisation chart. Cutting a post can therefore shift a burden onto the manager, slow down invoicing, compromise customer service or weaken internal controls.

Employers also have an interest in documenting their decisions. Why was a particular scenario chosen? What alternatives were considered? What direct and indirect costs were taken into account? How will notice periods, holiday entitlement, final pay, social security contributions, employment certificates and notifications to the authorities be handled? These issues must be assessed on a case-by-case basis with the relevant specialists, as the consequences vary depending on contracts, applicable collective agreements, the canton and the individual circumstances of employees.

The Swiss labour market therefore continues to be shaped by two opposing forces: companies reducing their workforce to survive or reposition themselves, and others still seeking qualified candidates. For SMEs, the best protection is neither a wait-and-see approach nor across-the-board cuts, but a clear-eyed analysis of the figures, prompt consultation with HR, legal and fiduciary advisers, and well-thought-out skills management before urgency dictates the timetable.