Editor’s Note
Laurelton Diamonds, a US-based firm, is cutting 60% of its Antwerp workforce, citing falling demand in key markets and competition from lab-grown stones.
Major Staff Cuts Announced
Laurelton Diamonds, an American diamond company, plans to lay off 26 workers, which represents 60 per cent of the staff at its Antwerp division, according to the Christian union ACV. The company’s management cites declining demand for diamonds from China and the United States, coupled with strong competition from cheaper synthetic diamonds, as the reasons for this decision.
Impact on the Workforce
Approximately 40 people work at Laurelton Diamonds’ branch in Antwerp’s Diamond Quarter. The company is part of the Tiffany & Co. jewellery brand, owned by the Louis Vuitton luxury goods group, where diamonds are sorted and graded.
“For the workforce the news came as a bolt out of the blue,” says Yves Toutenel of the Christian ACV union. “In 2018, the company closed its cutting plant in Antwerp. At that time, 20 staff were laid off. Laurelton now intends to make 18 blue-collar staff and eight white-collar workers redundant by the autumn.”
Talks are ongoing between management and the unions.
Market Challenges and Union Response
The company attributes the restructuring to competition from cheaper synthetic diamonds and a significant drop in demand from its largest customers, China and the United States.
“In addition, demand from China and the United States for diamonds has dropped considerably. They are the biggest customers for Antwerp diamonds,” says Mr. Toutenel.
The unions are involved in talks with management and are making counter-proposals.
“We want to prevent workers with a lot of experience from being made redundant. There are indications that the crisis in the diamond sector has bottomed out and that the market could rebound.”
Official Perspective on the Sector’s Struggles
Johan Klaps, the Antwerp alderman responsible for the diamond business, commented on the broader challenges.
“The sector is going through a difficult period,” he adds. “The figures have been falling for some time. It’s an international trend. This once again shows that real action to support the sector is needed. We are working hard to achieve this. Of course, the city of Antwerp has few powers to change anything with regard to the global trade in diamonds. The ban on Russian diamonds also exacerbates the problem.”
Focus on Quality and Ethical Sourcing
Alderman Klaps highlighted ongoing efforts to support the industry by emphasizing Antwerp’s quality and ethical standards.
“We are in constant dialogue with the AWDC, the sector’s umbrella organisation, and with the Flemish and federal governments to see how we can help. We are talking about innovation, promotion and our quality label. Quality is our trade name around the world. Anyone buying an Antwerp diamond knows that it has been checked, that it is ethical and not a blood diamond. We try to highlight this aspect as much as possible. Synthetic diamonds are a different product. A diamond from Antwerp is still something special,” says the alderman.
