Moët Hennessy Cuts Over 10% of Payroll
LVMH’s Moët Hennessy Plans Workforce Reduction Amid Sales Dip
Table of Contents
- LVMH’s Moët Hennessy Plans Workforce Reduction Amid Sales Dip
- Moët Hennessy Workforce Reduction: What You Need to Know
- Why is Moët Hennessy Reducing its Workforce?
- How Many Jobs Are Affected?
- What Caused the Sales Decline?
- How is Moët Hennessy handling the workforce Reduction?
- What Was the Financial Performance in 2024?
- How did the First Quarter of 2025 Fare?
- Who is Leading Moët Hennessy?
- What Role Does the US Market play in Moët hennessy’s Sales?
- What are the broader market impacts?
- Key Financial Metrics Summary
Moët Hennessy, the wines and spirits division of luxury conglomerate LVMH, intends to reduce its workforce by approximately 10%, potentially eliminating between 1,000 and 1,200 positions, according to a report in *La Lettre*. The company confirmed the details to AFP,but did not provide specific figures.
Restructuring After Sales Decline
The planned reductions follow a downturn in sales during 2024. Jean-Jacques Guiony, CEO of Moët Hennessy, and deputy director general Alexandre Arnault reportedly announced the cost-cutting measures in a video message to employees on Wednesday, according to *La Lettre*.
The company intends to achieve these reductions through attrition, by not replacing employees who leave, rather than implementing a formal social plan. “While the activity of Moët Hennessy found the level which was his in 2019, Moët Hennessy announced yesterday his intention to adjust his organization and to gradually return to his levels of workforce of 2019, essentially by the management of its natural turnover and the non-renewal of vacant posts” the subsidiary confirmed to AFP.
2024 Financial Performance
In 2024, Moët Hennessy experienced an 11% decrease in turnover, totaling €5.9 billion. LVMH attributed this decline to the normalization of demand for champagne and cognac after three exceptional years, coupled with a slowdown in consumption and a challenging market in China, according to the company’s annual results released in late January.
Continued Decline in Early 2025
The downward trend continued into the first quarter of 2025, with turnover decreasing by 8% to €1.3 billion.Sales of Cognac were a important factor in this decline. Jean-Jacques Guiony, formerly the group’s financial director, has managed the division since February, assisted by Alexandre Arnault.
Impact of Global Market Factors
In 2024, the United States accounted for 34% of LVMH’s wines and spirits sales, including brands such as Moët, Dom Perignon, and Hennessy.
The luxury sector had been relying on the American market to offset slower sales in China. However, potential customs duties announced by Donald Trump pose a new challenge. Like its competitors, LVMH is facing a slowdown in global demand, which contributed to a 2% decline in overall sales to €20.3 billion in the first quarter.
Moët Hennessy Workforce Reduction: What You Need to Know
Why is Moët Hennessy Reducing its Workforce?
Moët Hennessy, the wines and spirits division of LVMH, is planning to reduce its workforce by approximately 10%. This decision comes in response to a downturn in sales. Specifically, in 2024, the company experienced an 11% decrease in turnover. In early 2025, the downward trend in sales continued.
How Many Jobs Are Affected?
The reduction could possibly eliminate between 1,000 and 1,200 positions. The company confirmed the details to AFP,however,didn’t provide exact figures.
What Caused the Sales Decline?
The primary driver of the sales decline is attributed to several factors:
Normalization of Demand: Following three exceptionally successful years, there’s a normalization in demand for champagne and cognac.
Slowdown in Consumption: A general slowdown in consumer spending on luxury goods.
* Challenges in China: The Chinese market, a key market for luxury items, has presented difficulties.
How is Moët Hennessy handling the workforce Reduction?
Rather than implementing a formal social plan, the company intends to reduce its workforce through attrition. This means they will not replace employees who leave their positions.
What Was the Financial Performance in 2024?
In 2024, Moët Hennessy’s turnover totaled €5.9 billion, an 11% decrease compared to the previous year.
How did the First Quarter of 2025 Fare?
The downward trend persisted into the first quarter of 2025, with a further 8% decrease in turnover, totaling €1.3 billion. Sales of cognac represent an critically important issue in this decline.
Who is Leading Moët Hennessy?
Jean-Jacques Guiony, formerly the group’s financial director, has been managing the division as February, assisted by Alexandre Arnault.
What Role Does the US Market play in Moët hennessy’s Sales?
The united States accounted for 34% of LVMH’s wines and spirits sales in 2024. Brands like Moët, dom Perignon, and Hennessy are popular in the US.
What are the broader market impacts?
Potential customs duties announced by Donald trump pose a new challenge. Like its competitors,LVMH is facing a slowdown in global demand,which contributed to a 2% decline in overall sales to €20.3 billion in the first quarter for Moët Hennessy’s parent company, LVMH.
Key Financial Metrics Summary
| Period | Turnover (€ Billion) | Change (%) |
| ————- | ——————— | ———- |
| 2024 | 5.9 | -11% |
| Q1 2025 | 1.3 | -8% |