LVMH to cut 10 percent of Moët Hennessy workforce amid declining wine and spirits sales

LVMH, the French luxury conglomerate, has announced plans to reduce the workforce at its wine and spirits division, Moët Hennessy, by about 10 percent. This decision could affect between 1,000 and 1,200 positions out of the 9,400 employees working for Moët Hennessy worldwide. The information was first reported by La Lettre and later confirmed by the AFP. Employees learned of the decision on Wednesday through a pre-recorded video message from Moët Hennessy CEO Jean-Jacques Guiony and Deputy CEO Alexandre Arnault.

Moët Hennessy stated that it aims to gradually return to its 2019 staffing levels. The company plans to achieve this mainly through natural attrition and by not filling vacant positions, rather than through a formal redundancy plan. No specific numbers were confirmed by the company, but the intention is clear: to adjust the workforce in response to current market conditions.

The move comes after LVMH reported an 11 percent drop in sales for its wine and spirits segment in 2024, with revenues falling to 5.9 billion euros. The decline was highlighted during LVMH’s annual general meeting in mid-April. The first quarter of 2025 has continued this trend, with Moët Hennessy’s revenue down 8 percent to 1.3 billion euros.

Several factors have contributed to these results. The company faces ongoing commercial tensions between China and the United States, two key markets for luxury beverages. In 2024, the U.S. accounted for 34 percent of LVMH’s wine and spirits sales, driven largely by demand for champagne and cognac.

Moët Hennessy oversees some of the most prestigious names in the industry. Its portfolio includes renowned champagne houses such as Moët & Chandon, Dom Pérignon, Veuve Clicquot, and Krug. It also manages historic wine estates like Château d’Yquem in Sauternes and Domaine des Lambrays in Burgundy’s Côte de Nuits. On the spirits side, brands like Hennessy cognac, Glenmorangie and Ardbeg Scotch whiskies, and Belvedere vodka are part of its lineup.

The decision to cut jobs reflects broader challenges facing the global wine and spirits sector. Shifting consumer preferences, economic uncertainty, and international trade disputes have all put pressure on sales volumes and profitability. LVMH’s strategy appears focused on adapting its operations to these new realities while maintaining its leadership in luxury beverages.

The company has not announced any immediate layoffs or social plans but will rely on managing staff turnover and leaving open positions unfilled as employees depart. This approach is intended to minimize disruption while aligning resources with current business needs.

Moët Hennessy’s adjustment comes at a time when many luxury groups are reassessing their strategies amid changing global demand patterns. The outcome of these measures will be closely watched by industry observers as LVMH seeks to navigate a challenging period for its wine and spirits division.