Paris (AFP) -LVMH plans to remove some 10% of the wage bill of Moët Hennessy, which brings together the brands of champagne, wines and spirits of the group, according to the letter, information confirmed on Thursday partially to AFP by the division which does not give figures.
According to the letter, the CEO of Moët Hennessy, Jean-Jacques Guiony, and its deputy director general Alexandre Arnault announced on Wednesday, in a pre-recorded video sent to employees of the company, their intention to ultimately eliminate 1,000 to 1,200 positions.
These deletions will be made via the non -replacement of departures on the 9,400 positions in the world, without recourse to a social plan.
“While the activity of Moët Hennessy found the level which was his in 2019, Moët Hennessy announced yesterday his intention to adjust his organization and to gradually return to his levels of workforce of 2019, essentially by the management of its natural turnover and the non-renewal of vacant posts,” confirmed the subsidiary Thursday to AFP.
The LVMH wines and spirits subsidiary experienced a clear decline in 2024, with a turnover with a withdrawal of 11% over the year at 5.9 billion euros.
“After three exceptional years, post-Cavid normalization of the demand for champagne and cognac, which began in 2023, continued in a context of slowing down consumption and more difficult market in China,” said LVMH on the occasion of the publication of its annual results in late January.
For the first quarter of 2025, the turnover of this division managed since February by the former financial director of the group Jean-Jacques Guiony, assisted by Alexandre Arnault, continued his decline, with a drop of 8% to 1.3 billion euros, drawn down in particular by the sales of Cognac.
In 2024, the United States represented 34% of LVMH wines and spirits sales, with brands like Moët, Dom Perignon or Hennessy.
The luxury sector counted on the American market to counterbalance the slowdown in sales in China, but it must now face the customs duties announced by Donald Trump.
Touched as its competitors by a slowdown in global demand, the world number one LVMH luxury published disappointing sales in the first quarter, with a decline of 2% to 20.3 billion euros.
Agefi-Dow Jones The financial newswire
(END) Dow Jones Newswires
May 01, 2025 12:37 ET (16:37 GMT)
