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3w ago

Moët Hennessy to Cut Over 10% of Workforce as Sales Decline

LVMH's wine and spirits division faces slumping U.S. and Chinese demand, rising costs, and trade headwinds while refocusing on core brands.

Moet Champagne bottles are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina, October 29, 2024. REUTERS/Dado Ruvic/File Photo
A LVMH luxury group logo is seen prior to the announcement of their 2019 results in Paris, France, January 28, 2020. REUTERS/Christian Hartmann
Moët & Chandon was going down well at the Cheltenham festival but sales of high-end goods in the company’s key US and China markets were suffering

Overview

  • Moët Hennessy plans to reduce its workforce by over 10%, equivalent to around 1,200 employees, returning staffing levels to those of 2019.
  • Organic sales for the division dropped 9% in Q1 2025, driven by weak performance in key U.S. and Chinese markets.
  • Leadership, including CEO Jean-Jacques Guiony and deputy Alexandre Arnault, is focusing on flagship brands and operational streamlining to improve profitability.
  • Trade tensions, including 20% U.S. tariffs on EU goods and Chinese duties on European brandy, continue to pressure the business.
  • The timeline for the workforce reductions remains uncertain, with measures like natural attrition and vacant-position freezes being prioritized.