Moët Hennessy will lay off 10% of its workforce after the US and Chinese markets plummeted

Moët Hennessy intends to lay off more than 10% of its employees as a result of dwindling sales in important foreign markets.

According to a Financial Times story, luxury goods company LVMH plans to lay off more than 10% of its workforce at its wine and spirits branch, Moët Hennessy, affecting some 1,200 workers. The move coincides with broader attempts to streamline operations and dwindling sales in important foreign markets.

In an internal video message to employees, Moët Hennessy CEO Jean-Jacques Guiony and his deputy Alexandre Arnault—the son of LVMH owner Bernard Arnault—delivered the news. Although a precise date for the reduction has not been revealed, the executives clarified that the business plans to reduce headcount to 2019 levels.

According to LVMH, the restructure will mostly concentrate on handling natural turnover and leaving such positions unfilled. According to the FT, Moët Hennessy said yesterday that it would “adjust its organization and gradually return to its 2019 staffing levels, primarily by managing its natural turnover and not filling vacant positions,” even though its business had returned to its 2019 level.

Following Moët Hennessy’s 9% organic sales fall in the first quarter of 2025—the largest decline among LVMH’s business divisions—cuts were made. Weaker demand in two of its most important markets, China and the United States, was mostly blamed for the slowdown. LVMH’s larger luxury empire, which includes well-known brands like Louis Vuitton and Moët & Chandon, has been impacted by this performance.

As external variables like trade policy impede recovery attempts, Alexandre Arnault, who was tasked with revitalising Moët Hennessy in November 2024, is facing increasing obstacles. Although his appointment was seen as a calculated attempt to turn around the division’s performance, there are still obstacles because of the 20% retaliatory tariffs on EU exports that former US President Donald Trump announced.

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The French wine and spirits exporters organization issued a warning last month about the expected drop in US sales as a result of the additional taxes. The road to recovery for Moët Hennessy might be more challenging than first anticipated, given the sector’s current burden from geopolitical factors and changing customer behavior.

Moët Hennessy and LVMH have not yet made any public statements regarding the alleged layoffs.