Luxury goods giant LVMH is set to reduce headcount at its wine and spirits division, Moët Hennessy, by more than 10%, impacting approximately 1,200 employees, according to a report by the Financial Times. The decision comes amid declining sales in key international markets and broader efforts to streamline operations.
Jean-Jacques Guiony, CEO of Moët Hennessy, delivered the news in an internal video message to staff, alongside his deputy Alexandre Arnault, son of LVMH owner Bernard Arnault. The executives explained that the company intends to scale back to 2019 staffing levels, though a specific timeline for the cuts has not been disclosed.
LVMH confirmed that the restructuring would focus largely on managing natural turnover and leaving vacant roles unfilled. “While Moët Hennessy’s business has returned to its 2019 level, Moët Hennessy announced yesterday 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,” the company reportedly stated, as quoted by the FT.
The cuts come after Moët Hennessy recorded a 9% drop in organic sales in the first quarter of 2025, the sharpest decline among LVMH’s business divisions. The downturn was largely attributed to weaker demand in the US and China—two of its most critical markets. This performance has had ripple effects across LVMH’s broader luxury empire, which includes high-profile brands like Louis Vuitton and Moët & Chandon.
Alexandre Arnault, who was tasked with revitalising Moët Hennessy in November 2024, now faces mounting challenges, particularly as external factors like trade policy complicate recovery efforts. His appointment was viewed as a strategic move to reverse the division’s fortunes, but retaliatory tariffs on EU goods announced by former US President Donald Trump—set at 20%—pose additional hurdles
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Last month, the French wine and spirits exporters association warned of an anticipated decline in US sales in response to the new tariffs. With geopolitical pressures and shifting consumer behaviour already weighing on the sector, the road to recovery for Moët Hennessy may be more difficult than initially expected.
LVMH and Moët Hennessy have yet to comment publicly on the reported job cuts.
Melissa Enoch
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