PARIS — French luxury conglomerate LVMH announced plans to reduce the workforce at its wine and spirits division, Moët Hennessy, by approximately 10%, potentially affecting between 1,000 and 1,200 positions out of a global staff of 9,400.
The news, first reported by La Lettre and later confirmed by AFP, was communicated to employees on Wednesday via a pre-recorded video message from Moët Hennessy CEO Jean-Jacques Guiony and Deputy CEO Alexandre Arnault.
According to Moët Hennessy, the reduction will be implemented gradually, aiming to return to 2019 staffing levels. The company intends to avoid formal layoffs, instead relying primarily on natural attrition and the decision not to fill vacated positions. While specific figures were not officially confirmed, the company signaled a clear intention to realign its workforce with current market conditions.
The restructuring comes in response to sustained financial pressure on LVMH’s wines and spirits business. In 2024, the division recorded an 11% year-on-year decline in revenue, falling to €5.9 billion. That downward trend persisted into the first quarter of 2025, with sales dropping a further 8% to €1.3 billion, as disclosed during LVMH’s annual shareholders meeting in April.
Several global headwinds have contributed to the downturn, including ongoing trade tensions between China and the United States — both critical markets for Moët Hennessy. In 2024, the U.S. accounted for 34% of the division’s sales, largely driven by Champagne and Cognac.
Moët Hennessy’s portfolio includes some of the most iconic names in luxury beverages, such as Moët & Chandon, Dom Pérignon, Veuve Clicquot, and Krug in the Champagne sector, as well as Château d’Yquem and Domaine des Lambrays in fine wine. Its spirits brands include Hennessy Cognac, Glenmorangie and Ardbeg Scotch whiskies, and Belvedere vodka.
The planned reductions reflect broader challenges confronting the global wine and spirits industry, where shifting consumer behavior, economic volatility, and geopolitical frictions are affecting both volume and profitability. LVMH’s strategy signals a pivot toward greater efficiency and adaptability while maintaining its position at the forefront of the luxury beverage market.
No immediate layoffs or social measures have been announced, and the company emphasized a controlled, minimally disruptive approach to managing the transition. As LVMH and other luxury houses recalibrate in response to changing global dynamics, analysts will be closely monitoring the impact of these measures on Moët Hennessy’s performance.
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