Majors

Pandora Trims Workforce Again Amid Reorganization

MajorsMar 06, 2020

Pandora Trims Workforce Again Amid Reorganization

The jeweler has a multi-step strategy to get back on track, including increased investments in tech and improvements to its retail presence.

A 14-karat rose-gold-plated link cable chain necklace ($225) featuring an “O Pendant” with a pink Murano glass leaf pendant ($65) and a pink Murano glass leaf ring ($90) from Pandora. The jewelry brand is undergoing a reorganization as part of its turnaround plan.

Copenhagen, Denmark—Pandora announced this week that it is cutting 180 jobs as part of a multipronged strategic reorganization, the next step in its turnaround plan.

The Danish jeweler employs a total of 28,000 people worldwide, meaning the job cuts will affect less than 1 percent of its workforce.

Here’s a rundown of the changes and what they mean for the jewelry brand.

Pandora is closing some regional offices.

The company will close its three regional offices in EMEA (Europe, Middle East and Africa), the Americas and the Asia-Pacific region.

“The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth”, CEO Alexander Lacik said in a press release announcing the changes.

Lacik said the change would allow feedback from customers to translate into new concept creations at a quicker pace.

As a result of the reorganization, David Allen, president of Pandora EMEA, will step down from his position but stay with the company.

Kenneth Madsen, current president of Pandora Asia Pacific, will leave the company.

Pandora operates in 100 markets, which will now be grouped into 10 clusters with each cluster led by a general manager who will be based in the largest market in each cluster.

Sid Keswani, president of Pandora Americas, will become president of the North America cluster, which will include the United States. (Latin America, which was part of Pandora Americas, will be part of a different cluster.)

Keswani is based in Baltimore, where Pandora has its North American headquarters.

Pandora wants to bolster its retail skills.

As part of the new system, the general managers will report to the chief commercial officer, a newly created position.

The external candidate will be announced shortly, said Pandora, and is set to join the company’s executive team in the second quarter of this year.

The CCO will report to Lacik and be tasked with improving Pandora’s global retail skills including global merchandising, store development, planning and execution.

A new department called “network and franchise management” will also be created to support its global franchise partners.

Pandora is separating old business from newer ventures.

Pandora is setting up two global business units. One will oversee core products, like its charms, and the other will oversee newer products.

The new setup is expected to “offer more impactful products and marketing concepts and a more consistent consumer experience across markets,” Pandora said in the release.

The

units will be responsible for concept development, design, execution and marketing plans.

These units will report to Carla Liuni, the newly appointed chief marketing officer and former Bulgari executive who starts at Pandora on March 20.

The company also recently appointed Erik Schmidt as its chief human resources officer.

Pandora is going all-in on tech and data analytics.

Pandora is establishing a global business services center to make its transactional processes more scalable and efficient.

In January, the jeweler announced the creation of a new Copenhagen-based digital group, consisting of software engineers, designers and analysts, established to boost its digital presence and data use.

The group is set to be up and running next month.

Pandora said it expects to hire around 80 new employees in 2020, including product managers, digital engineers, operations managers, strategy managers and data analysts.

“How we derive the benefits from technology and data to create a great customer experience is key for us as a global brand,” Chief Digital and Omnichannel Officer David Walmsley said in release announcing the creation of the digital hub back in January.

Pandora doesn’t expect the job cuts to result in cost savings.

The company’s financial guidance for 2020 remains unchanged.

The reorganization will translate into one-time costs of 200 million Danish kroner ($300 million), mostly related to severance payments, consultancy support, recruitment costs and other costs associated with closing down the regional offices.

Its total restructuring costs will amount to 1.3 billion Danish kroner ($1.95 billion) in 2020.

Pandora said the cost savings of eliminating 180 employees will be limited and are expected to be offset by costs related to “further strengthening” the company.

The changes are set to go into effect April 2.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

EditorsMay 25, 2022
7 Standout Tiaras in Sotheby’s Platinum Jubilee Exhibition

Senior Editor Brecken Branstrator chooses the pieces she’d most want to see in person.

IndependentsMay 25, 2022
The Mexican Shack to Close After 47 Years

Owner Steve Delzio shares his thoughts on retirement after nearly five decades in the jewelry industry.

IndependentsMay 25, 2022
Designer Theo Fennell Has Written a Memoir

“I Fear for This Boy” takes readers through the ups and downs of his business and is available for pre-order now.

Brought to you by
Dive into GIA’s Pearl Expertise

When it comes to knowing the identity and quality of your pearls, count on GIA as your independent pearl experts.

IndependentsMay 25, 2022
MVEye, Wedding Report Partner on New Jewelry Research Platform

“Today’s Wedding Jewelry Consumer” shares data about engagement ring market size, lab-grown and natural diamonds, and more.

Weekly QuizMay 19, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
ColumnistsMay 24, 2022
The PR Adviser: 10 Questions to Contemplate

Columnist Lilian Raji wants to walk you through the customer journey. But first, she’d like you to answer a few questions.

Events & AwardsMay 24, 2022
8 Gold Jewelry Designers Unveil New Platinum Designs

Several Couture brands have partnered with Platinum Guild International ahead of the jewelry trade show.

Brought to you by
A.I. Grading is Changing Conversations at the Retail Counter

Advanced technology levels the playing field, helping jewelers give customers what they want.

Lab-GrownMay 24, 2022
Kendra Scott Unveils Lab-Grown Engagement Ring Collection

The jewelry company is moving into bridal just a month after branching out into the watch world.

SourcingMay 24, 2022
State of the Diamond Industry: Where Does Supply Go From Here?

The 2008 economic crisis, COVID-19, and sanctions on Russian goods have set the stage for an interesting decade for natural diamond supply.

Events & AwardsMay 24, 2022
WJA to Host Diversity Keynote at New Las Vegas Breakfast Event

The Generating Community Impact fundraiser on June 11 will feature Karine Bah Tahé of Blue Level Training.

WatchesMay 23, 2022
Steven Kaiser, Watch Industry Veteran and Beloved Mentor, Dies at 68

Kaiser, whose illustrious career spanned decades, died suddenly on Friday.

IndependentsMay 23, 2022
Long’s Jewelers to Open New Location

The family-owned jeweler is relocating its Braintree, Massachusetts, store to a new space.

IndependentsMay 23, 2022
Luxury Goods Veteran Olivier Stip Joins Chicago Jeweler CD Peacock

He will step into the retailer’s newly created role of chief development officer.

GradingMay 23, 2022
Gem-A Launches Digital Entry-Level Gemology Course

GemIntro is meant to give a broad introduction to gems and gemology.

Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain

Three industry experts discuss “recycled” gold vs. mined, their challenges and benefits, and how jewelers can navigate the area.

FinancialsMay 20, 2022
Richemont’s 2022 Jewelry Sales in the Americas Nearly Double

Cartier, Van Cleef & Arpels, and Buccellati put on stellar performances.

AuctionsMay 20, 2022
Piece of the Week: ‘Birds in Flight’ by Oscar Heyman

The New York jeweler made this incredible, colorful Art Deco bracelet featuring tropical birds in 1927.

SurveysMay 19, 2022
5 Predictions for Jewelry Retail in the Second Half of 2022

From a slowdown in sales growth to rising costs, Fruchtman Marketing outlines its expectations for the second half of the year.

SourcingMay 19, 2022
De Beers’ Rough Sales Up 21% So Far This Year

One analyst cited rising diamond prices and the sanctions on Alrosa as contributing factors.

CollectionsMay 19, 2022
Brilliant Earth Collaborates with Jade Trau

The two have partnered on a capsule collection.

MajorsMay 19, 2022
Jewelers Mutual Adds 2 Industry Veterans to Its Board

John A. Green of retailer Lux Bond & Green and Niveet Nagpal of Omi Privé have joined the board of directors as of May 18.

FinancialsMay 18, 2022
Watches of Switzerland’s Jewelry Sales More Than Doubled in Q4

The retailer also said demand for Rolex, Patek Philippe, and Audemars Piguet watches continues to exceed its supply.

AuctionsMay 18, 2022
Jewels from Bette Midler Are Headed to Bonhams

The auction house’s upcoming sale also includes collections from American heiresses.

IndependentsMay 18, 2022
Jeweler Lewis Baribault Celebrates 50th Work Anniversary

The Connecticut jeweler reflected on five decades in the industry and what the future holds for the family business.

Events & AwardsMay 18, 2022
Visit A Mine in New Jersey With WJA New York Metro

The chapter has organized a day trip to the Sterling Hill Mine and Museum in Ogdensburg on Saturday, May 21.

SourcingMay 17, 2022
A New Source in Tanzania Is Producing Cobalt-Blue Spinel

The stones come from a deposit close to Mahenge and have been on the market for several months.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy