Global wine and spirits giant Moët Hennessy will cut more than 10% of its global workforce as part of a major restructuring effort in a bid to counter falling demand and rising costs, the Financial Times reported in London..
The newspaper says the wine and spirits arm of luxury giant LVMH currently employs around 9,400 people. Chief executive Jean-Jacques Guiony told staff earlier this month that an estimated 1,200 roles would be eliminated, bringing the division back to its 2019 staffing levels.
Revenues at Paris-based Moët Hennessy have fallen to 2019 levels, Guiony said, yet operating costs have jumped 35% over the same period.
The newspaper says the wine and spirits arm of luxury giant LVMH currently employs around 9,400 people. Chief executive Jean-Jacques Guiony told staff earlier this month that an estimated 1,200 roles would be eliminated, bringing the division back to its 2019 staffing levels.
Revenues at Paris-based Moët Hennessy have fallen to 2019 levels, Guiony said, yet operating costs have jumped 35% over the same period.
“This was an organisation that was built for a much larger size of business,” he said in an internal video.
“People realise … that this [rebuilding sales] is not going to happen anytime soon.”
The cuts will largely be achieved through natural attrition and by reassigning staff to other areas of the business. Moët Hennessy has already implemented a hiring freeze.
The cuts will largely be achieved through natural attrition and by reassigning staff to other areas of the business. Moët Hennessy has already implemented a hiring freeze.
Deputy CEO Alexandre Arnault, who joined the division alongside Guiony in February, told staff that this crisis was unusual in scope.
“Usually at LVMH when wines and spirits are not going well, fashion is doing well or some [other part of the business] is performing differently. Right now things are not going extremely well,” he said.
In a statement, a Moët Hennessy spokesperson confirmed the planned cuts.
In a statement, a Moët Hennessy spokesperson confirmed the planned cuts.
“While Moët Hennessy’s business has returned to its 2019 level, Moët Hennessy announced its intention to adjust its organisation and gradually return to its 2019 staffing levels, primarily by managing its natural turnover and not filling vacant positions,” it said.
Guiony reassured staff that the current downturn was part of a cycle.
Guiony reassured staff that the current downturn was part of a cycle.
“Things are bad but they will become better,” he said, though he warned that US tariffs added another layer of uncertainty to the company’s outlook.
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