Moët Hennessy, the wine and spirits division of French luxury conglomerate LVMH, is preparing to cut more than 10% of its global workforce, citing declining sales and rising operational costs.
The move, part of a sweeping internal restructuring, will affect roughly 1,200 employees and return the business to its 2019 staffing levels.
The announcement, first reported by the Financial Times, marks one of the most significant reductions in headcount at the world’s largest luxury group in recent years.
Moët Hennessy currently employs about 9,400 people worldwide.
Jean-Jacques Guiony, who became chief executive of Moët Hennessy in February, addressed employees in an internal video, explaining that while revenues had dropped back to 2019 levels, operational expenses had ballooned by 35% over the same period. “This was an organization that was built for a much larger size of business,”Guiony said. “People realize that rebuilding sales is not going to happen anytime soon.”
“This is an unusual situation,” said Alexandre Arnault, LVMH’s deputy chief executive and son of billionaire founder Bernard Arnault, who joined the wine and spirits arm alongside Guiony earlier this year. “Usually, when wines and spirits are not going well, another division, like fashion, offsets the decline. Right now, things are not going extremely well across the board.”
The planned cuts will primarily occur through natural attrition and unfilled vacancies rather than mass layoffs. The company has already instituted a hiring freeze and has begun reducing its workforce quietly, including the elimination of about 70 positions in China earlier this year out of a planned 100.
In a statement, Moët Hennessy confirmed the restructuring plan: “While Moët Hennessy’s business has returned to its 2019 level, the company announced its intention to adjust its organization and gradually return to 2019 staffing levels, primarily by managing its natural turnover and not filling vacant positions.”
What to know
Moët Hennessy has struggled in recent quarters amid broader industry headwinds and shifting global demand. Organic sales for the division dropped 9 percent in the first quarter of 2025, making it the weakest-performing unit at LVMH. In contrast, the group’s overall organic sales fell 3 percent.
The restructuring comes as luxury conglomerate’s stock mirrored the decline, with LVMH shares falling 22.56% year-to-date, closing at €492.05.
Bernard Arnault, chairman and CEO of LVMH and Europe’s richest man, also saw a sharp erosion in his fortune. This year alone, Arnault’s net worth has fallen by $23.4 billion, including a $452 million drop in a single day, according to Bloomberg data. His current estimated wealth stands at $153 billion.
