Pandora Cuts Jobs, Sales Forecast for 2018

MajorsAug 07, 2018

Pandora Cuts Jobs, Sales Forecast for 2018

The bead and jewelry maker said it is laying off 397 workers, mostly at its manufacturing facilities in Thailand.

Copenhagen, Denmark—Pandora said Tuesday it will cut nearly 400 jobs as it looks to streamline manufacturing and shift more resources to digital and e-commerce operations.

A total of 397 of the company’s 27,000 employees, or less than 2 percent of the total workforce, will be laid off. The majority of the layoffs, 218, will be in Thailand, where its jewelry is manufactured.

Pandora said it is making the cuts to protect profitability and support the five-year strategy implemented last year. The cuts will save the company about DKK 150 million ($23.3 million).

The announcement came the day after the bead and jewelry maker reported flat second quarter sales and slashed its forecast for the year.

Pandora, which is grappling with slowing sales in key markets like the United States and China, said it now expects a revenue increase of 5-7 percent (in local currency) on the year, down from its previous prediction of 7-10 percent. It also warned that profit margin will be lower than previously forecast, 32 percent instead of 35 percent.

Also this week, the company announced the appointment of a new head for the Americas, Sid Keswani.

Keswani replaces Scott Burger, who resigned at the beginning of the year.

He joins Pandora from Fiesta Mart, a Texas-based grocery store chain. Prior to that, he spent 19 years as an executive at Target Corp. and was the senior vice president of operations for Susser Holdings, a convenience store chain.

As president of the Americas for Pandora, Keswani will oversee the bead and jewelry company’s operations in North America, the Caribbean and Latin America. The region has more than 2,300 points of sale, including more than 650 concept stores, nearly a third of which are now owned and operated by Pandora.

The region employs a total of 3,400.

Pandora said a key priority for Keswani will be to work with franchisees and Pandora-owned stores to ensure they are integrating their operations with the company’s online store, which opened in April 2015.

His appointment is effective Aug. 13.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

TrendsAug 04, 2021
Amanda’s Style File: August’s First Birthstone

Before spinel joined the August birthstone lineup, peridot reigned supreme.

IndependentsAug 04, 2021
JA Welcomes New Board Chair, Elects 5 New Directors

Bob Moeller of R.F. Moeller Jeweler takes over as chair of the trade association’s board.

EditorsAug 03, 2021
Did Ben Affleck Just Commit a Cardinal Jewelry Sin?

Senior Editor Ashley Davis points out that J. Lo isn’t the first object of Affleck’s affections to wear Foundrae.

Brought to you by
How to Build a Successful Multi-Generational Jewelry Business

RDI Diamonds CEO Michael Indelicato shares his advice for taking a family business to the next level.

ColumnistsAug 03, 2021
Squirrel Spotting: 5 More Pointers From ‘The Sales Minute’

Peter Smith shares additional tips from his new book, which include thoughts on avoiding negative people and using hand gestures.

Weekly QuizJul 29, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of July 26-30, 2021.
Take the Quiz
Policies & IssuesAug 03, 2021
5 Things Retailers Should Know About COVID-19 Safety

As the Delta variant spreads rapidly, some retailers are reinstating mask mandates and requiring employees to get vaccinated.

Policies & IssuesAug 03, 2021
SCS Names Brandee Dallow VP of Sustainability for Luxury Goods

The industry veteran will help the company expand its certification programs for the fine jewelry, accessories, and apparel industries.

Brought to you by
3 Reasons Why You Should Start Appraising This Summer

Create appraisals with the Jewelry Appraisal Solution on the Zing by Jewelers Mutual Group® platform and leverage the expertise of Gemworld.

Recorded WebinarsAug 02, 2021
Watch: All About the Vegas Shows

The trade show organizers for JCK, Luxury, Couture, and AGTA Gem Fair come together for a pre-show update.