Why it's time to go...
A week of (shocking) departures among Swiss top-shots
Dear Insider,
It’s time to say good-bye…
No, no - The Swiss Insider is sticking around…don’t worry!
But that’s more than can be said for two big names in Swiss politics and Swiss business.
For them - it’s the end of the road.
Federal Councillor Viola Amherd and Swiss Post CEO Roberto Cirillo both announced their imminent resignations this past week.
And in both cases - it was both surprising…and not.
Read on to learn why…
Ian
💡PS: While some people are “going down” - others are coming up…including these highly motivated Swiss startup founders. Check them out…
Viola Amherd calls it quits
It came completely as a surprise...
If fellow Federal Councillor Albert Rösti is to be believed, the sudden resignation of Viola Amherd shocked her executive colleagues as much as it did the rest of the country.
All the more so that Rösti’s SVP colleagues had recently made an adamant call for her to step down “immediately.”
In the end, she did just that.
The question is - why?
The road already travelled
In her resignation speech, Amherd cited a long career as one reason for her to “pass the baton.”
Indeed - 30 years at the top of the political game is a long time.
From her humble start as a city councillor in Brig in 1993 to a seat in parliament in 2005 to becoming the first female defence minister in Swiss history, the solid, if not stodgy has seen (almost) everything.
Along the way, the center-conservative politician (with a college degree in Latin) managed to skilfully navigate more than one tricky situation.
Her handling of a flood in Brig was an early sign of her crisis management skills. They came in handy again in 2020, when Amherd had to announce a forced evacuation of some Mitholz residents because some army ammunition stored nearby was at risk of explosion.
But few believe that a long career capped by only 5 years on the Federal Council would justify such an abrupt departure.
Questionable achievements
As the first woman at the head of the defence and sport department, Amherd can legitimately claim to have been a trailblazer.
Her political success at the notoriously difficult post indeed bear praising:
She lobbied for (and got) an increase in the army’s budget, no small feat after Swiss referendum voters signalled their discontent with the service in 1989.
She led a successful campaign to approve the 6 billion CHF purchase of F-35 fighter jets, a vote that she was expected to lose.
As Swiss president in 2024, she helped organize and lead the Ukrainian peace conference on Burgenstock in Canton Luzern.
But other initiatives did not stand out so well.
From her center political position, Amherd pushed for more acceptance of women in the military - a traditionally socialist focus point.
She also managed to hide many of the army’s shortcomings until voters had given her the green light for greater procurements - something that did not inspire confidence.
At the same time, she dragged out negotiations with French jet manufacturers, giving them false hope. The move seemed to have some negative consequences on Swiss-French relations after she ultimately selected Lockhead-Martin’s F-35s.
The real reasons?
The true motivation for Amherd’s resignation remains speculation. But some circumstances may be worth noting…
Just a few short days ago (see last week’s edition of The Swiss Insider), Amherd came under intense criticism from SVP, who criticised her focus on gender issues in the military (among other things)
Going forward, Amherd would be without her closest (long-time) advisor Brigitte Hauser-Süess who recently concluded her much-criticised consulting mandate for the defence minister. Hauser-Süess was found to have earned a whopping 32’000 CHF per month, giving her a better yearly salary than US president Joe Biden.
Some sources also speculate that the recent resignation of Center Party president Gerhard Pfister also contributed to Amherd’s decision. With internal party politics in upheaval and attacks from the outside - it was a good time to go.
🇨🇭 Swiss private equity’s little guys
Far from the public eye, some highly-focused private equity firms in Switzerland are looking for outsized returns… And they’re getting them.
Here are 5 Swiss PE firms that might be good to know…
Roberto Cirillo leaves his post
In other news…
Swiss Post CEO Robert Cirillo also announced his surprise resignation, effective the end of March 2025. He had held his position for 6 years.
Another case of “passing the baton”? Hardly…
As much as Amherd, Cirillo had also been taking heat - quite a bit in fact - on several fronts:
Branch Network Reduction: In October 2024, Swiss Post announced plans to close 170 branches, transitioning services to postal agencies. Critics argued this would diminish service accessibility, particularly affecting rural communities.
Strategic Direction: Cirillo faced scrutiny over Swiss Post's strategic initiatives, with detractors questioning the focus on new services and digital transformation. Some stakeholders were concerned about the potential neglect of core postal services amidst these changes.
Financial Performance: Despite efforts to modernize, Swiss Post experienced a decline in operating profit during Cirillo's leadership. In 2023, the company reported an operating profit (EBIT) of 323 million Swiss francs, a decrease of 35 million francs from the previous year, raising concerns about the effectiveness of implemented strategies.
Doubtless, it did not help that Swiss Post (as a good climate-conscious company would) acquired a large forest in Germany to offset its carbon footprint.
The move later faced challenges (and criticism) due to pest infestations…
A chart is worth…
Speaking of defence… Military spending for neutral Switzerland has hovered under 1% of GDP for many years.
🔁 Make sure to share this post with a friend or colleague - they will thank you!
The Bonus
🧻 On a (toilet) roll - Cartaseta, Switzerland’s only producer of toilet paper, has been honored with the Solothurner Entrepreneur Award for its successful transformation since 2005. The firm employs 113 people and has invested 30 million Swiss francs in modernization, supplying over 80% of its products to major Swiss retailers. (Link)
🥇First time for her - The Swiss Olympic Committee has a new leader - and not an unknown name either. Former Swiss Federal Councillor Ruth Metzler-Arnold will become the first woman to lead the sporting body (Link)
🪧 No to that - As the World Economic Forum rolls back into town (Davos), so do protests against the elite business gathering. Two have been granted permission by government officials in Davos. One illegal demo took place in Bern. (Link)