RTL Today – Global IP firm: OGBL slams Marks & Clerk’s ‘unjustifiable’ Luxembourg office closure

The staff delegation of Marks & Clerk (Luxembourg) and the Independent Luxembourg Trade Union Confederation (OGBL) have strongly condemned the company’s decision to terminate 28 of its 30 employees – effectively closing its Luxembourg office. The cuts represent over 90% of the local workforce, excluding one fixed-term employee and a senior manager not covered by the social plan.

According to worker representatives, management announced the restructuring without meaningful consultation and has refused to negotiate adequate severance terms. The decision particularly impacts specialists in Luxembourg’s limited intellectual property sector, where alternative employment opportunities are scarce.

Under Luxembourg labour law, negotiations for a social plan began on 7 July 2025. When no agreement was reached by the 22 July deadline, the case moved to the National Conciliation Office (ONC), which held its first mediation session on 4 August.

Despite this intervention, Marks & Clerk management has shown no willingness to change its position. A new 15-day negotiation period began on 5 August. If no agreement is reached by 19 August, the company may proceed with dismissals under minimum legal severance terms.

The redundancy decision appears particularly contentious given Marks & Clerk’s international presence and strong financial position. The intellectual property firm maintains offices across Europe, North America, and Asia, with its UK/Luxembourg LLP branch reporting €24 million in pre-remuneration profits for 2024 – a 20% increase from 2023.

Worker representatives argue this financial strength makes the company’s stance toward Luxembourg employees particularly indefensible. According to Wednesday’s OGBL press release, management reportedly asserted that “affordability doesn’t obligate acceptance” of employee demands, despite acknowledged capacity to fund better severance terms.