Moët Hennessy, the wine and spirits division of luxury giant LVMH, is preparing to reduce its global workforce by over 10%, equating to approximately 1,200 jobs. The internal restructuring comes in response to falling sales and rising costs, as the company returns to its 2019 staffing levels.
In an internal video shared with employees, Jean-Jacques Guiony, who took over as CEO of Moët Hennessy in February 2025, explained that revenues have dropped back to 2019 levels while operational expenses have surged by 35%. "This was an organization that was built for a much larger size of business," Guiony stated, indicating that a recovery in sales is not expected soon.
The move was confirmed by Alexandre Arnault, Deputy CEO and son of LVMH Chairman Bernard Arnault, who joined the division earlier this year. Arnault highlighted the exceptional nature of the situation, noting that while underperformance in one division is usually balanced by others such as fashion, current struggles are more widespread across the group.
Rather than mass layoffs, the job cuts will be implemented primarily through natural attrition and by not filling vacant roles. A hiring freeze is already in place, and the company began reducing headcount earlier in the year, eliminating about 70 of 100 planned positions in China.
Organic sales at Moët Hennessy dropped 9% in Q1 2025, making it LVMH's weakest-performing division. The decline, mainly driven by weak demand in the U.S. and China, also impacted the group's overall performance, where total organic sales fell 3%. These challenges are compounded by newly imposed 20% reciprocal tariffs by the U.S. government on EU goods, potentially worsening prospects for French wine and spirits exports.
The job cuts represent one of the most significant reductions at LVMH, the world’s largest luxury group, in recent years. The news also follows a tough period for Bernard Arnault, whose fortune has dropped by USD 23.4 billion in 2025 alone, amid stock declines and global market uncertainty.
Moët Hennessy currently employs around more than 12.000 people. The restructuring aims to stabilize the business during this volatile period while preparing for a more sustainable future.
