Amid difficult market conditions and pandemic-related losses, around 1,000 jobs are set to be axed this autumn, with a further 600 to be cut by 2022.
Around 4,600 employees are currently employed at the site.
Robert Buchbauer, chairman of Swarovski Crystal, told APA the decision was “painful but unavoidable”.
According to Reuters, the group will look to “merge under one roof” its various businesses, which include jewellery, home accessories and the Swarovski Kristallwelten experience attractions at its headquarters in Watten.
It comes as its revenues are expected to fall by around 35% to €2bn (£1.8bn) in the wake of the crisis.
News of the planned redundancies comes only two months after the appointment of Giovanna Battaglia Engelbert as the group’s first ever company-wide creative director.
The role was the first of its kind in the jewellery giant’s 125-year history, which said it was “reflective of a restructuring” that has recently been seen across the group.
The appointment closely followed news that Swarovski family members, Robert Buchbauer, Nadja Swarovski, and Mathias Margreiter also joined the executive board.