Layoffs of 10% of staff confirmed by Moet Hennessy due to the ongoing luxury industry slowdown
Moet Hennessy Shake-up: Over 1,000 Workers on Chopping Block
Luxury titan LVMH's beleaguered drinks division, Moet Hennessy, has announced a significant staff reduction, cutting its workforce by over 10%. This move, led by newly-appointed executives, aims to revitalize the division's performance, struggling in the face of a depressed global market for alcohol sales.
With a headcount of around 9,400, about 1,200 positions are up for grabs, according to Jean-Jacques Guiony, Moet Hennessy's CEO, who shared the plan with staff last week in an internal video. He added that the division's earnings have remained stagnant at 2019 levels, despite a steep 35% surge in operational costs since then.
Guiony, along with Alexandre Arnault, son of LVMH's chief executive and chair, arrived at Moet Hennessy in February with a mission to spur improvements in performance. The division expanded rapidly between 2019 and 2022 but has faltered since, with organic sales dropping a whopping 9% in the first quarter of 2025, compared to LVMH's overall dip of 3%.
Although LVMH has weathered crises in the past, according to Alexandre Arnault, this one stands out. Unlike previous struggles, all of LVMH's major divisions are currently experiencing hard times, he observed.
Internal company documents suggest that discussions about staff reductions have been ongoing, even before the current leadership took over. Hiring freezes were enforced in the second half of 2023, and managers were considering slashing hundreds of roles in 2024. At least 70 out of a targeted 100 employees were let go in China in 2024, according to internal communications.
Despite the gloomy outlook, Guiony offered a glimmer of hope. "Things are bad, but they will improve. This is a cycle," he reassured employees, acknowledging the additional pressure caused by U.S. tariffs.
While the timeline for the job cuts remains unclear, Guiony explained that the reductions would predominantly occur through natural attrition and transitions into other job openings within the company. A Moet Hennessy spokesperson corroborated the intention to adjust the organization and return to 2019 staffing levels by managing natural employee turnover and not filling vacant positions.
Adrienne Klasa© 2025 The Financial Times.
Originally published in The Financial Times.**
- Despite the ongoing challenges in the industry, new executives at Moet Hennessy, such as Jean-Jacques Guiony and Alexandre Arnault, have announced reductions to the workforce to revitalize the division's performance.
- The Planned staff reduction will result in a trimming of around 10% of Moet Hennessy's workforce, leaving over 8,000 employees and affecting about 1,200 positions.
- Moet Hennessy, a division of the luxury conglomerate LVMH, has faced stagnant earnings and increased operational costs, attributed to a depressed global market, which has led to the need for these tariff-related workforce adjustments.
- The Finance department of Moet Hennessy will likely have a more significant role in guiding the firm's business decisions to navigate through the challenges posed by the U.S. tariffs and industry turbulence.
