With the wine and spirits industry in turmoil, the LVMH group has announced plans to cut 10-12% of the workforce in its Moët Hennessy division. However, this restructuring will not result in a redundancy plan.
The wine and spirits division of the LVMH group has announced the elimination of 1,200 jobs.
This entity, which includes the Moët & Chandon champagne brand and the Hennessy cognac house, is facing a continued decline in sales and rising costs.
No timetable has yet been set for these job cuts, as the wine and spirits subsidiary of the world’s leading luxury goods company, which has had new management since the beginning of the year, believes that it will take time for sales volumes to recover.
Gradual restructuring
The information was communicated to employees on April 30 via a pre-recorded video from the new CEO of the Moët Hennessy division, Jean Jacques Guiony, alongside the deputy director and son of the group’s CEO, Alexandre Arnault.
The LVMH group’s wine and spirits division justified its decision by stating its “intention to adjust its organization and gradually return to its 2019 staffing levels, primarily through the management of natural turnover and the non-renewal of vacant positions.”
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