Moët Hennessy Job Cuts: 1,200 Positions Axed in Video Announcement
Moët Hennessy Announces Workforce Reduction Amid Sales Dip
CHAMPAGNE, France – Moët Hennessy, the wines and spirits division of LVMH, revealed plans to reduce its workforce by 1,200 positions. The declaration, delivered to employees via video on Wednesday, April 30, comes as the company faces declining sales, especially in cognac, according to a statement released Friday.
Employee Notification Sparks Union Concerns
The method of communicating the job cuts has drawn criticism. Employees reportedly learned of the decision through a video attachment in an email from management, titled “Look at tomorrow #2. Our leaders share their strategic vision for moët Hennessy.” The 20-minute video featured an interview with Jean-Jacques Guiony, CEO, and Alexandre Arnault, deputy director of LVMH, outlining the group’s new strategy.
Alexandre Rigaud, a CGT delegate representing Moët & Chandon, expressed his disapproval of the interaction strategy. He described it as “very clumsy and disconnected,” adding that union representatives were not informed beforehand. Rigaud noted that the timing,just before the May 1 holiday,meant many employees were on vacation and learned of the news through media reports. “We don’t tell something like that in a video,” Rigaud said, highlighting the anxiety caused by the announcement.
Company Response and Rationale
Moët Hennessy stated that the job reductions, representing approximately 13% of its total workforce, aim to bring the company back to its 2019 staffing levels.The company intends to achieve this reduction “by managing its natural turnover and the non-renewal of vacant posts,” effectively avoiding a formal social plan.
Sales Decline Cited as Key Factor
The LVMH subsidiary reported an 11% decrease in turnover for 2024 and an 8% decline in the first quarter of 2025. The company attributed the downturn primarily to weaker demand in China and the United States, particularly impacting cognac sales.
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Moët Hennessy Announces Workforce Reduction: Your Questions Answered
Moët Hennessy, the renowned wines and spirits division of LVMH, has announced plans to reduce its workforce. This article provides a comprehensive overview of the situation, answering key questions and offering insights into the company’s decisions.
What is happening at Moët hennessy?
Moët Hennessy is reducing its global workforce by 1,200 positions. This decision comes in response to declining sales in key markets.
Why is Moët Hennessy reducing its workforce?
Moët Hennessy is facing declining sales, particularly in cognac, with weaker demand in China and the United States being the primary drivers. The company attributes the decrease in turnover to these factors.