LVMH’s wine and spirits arm, Moët Hennessy to Trim Workforce by Over 10%

LVMH’s wine and spirits arm, Moët Hennessy, is popping a different kind of cork this week — and it’s not champagne. According to the Financial Times, the luxury conglomerate will be cutting more than 10% of its workforce, translating to around 1,200 roles, in an effort to bring headcount back to 2019 levels.

The news reportedly came via an internal video message from division CEO Jean-Jacques Guiony, who, alongside deputy Alexandre Arnault (yes, son of LVMH boss Bernard Arnault), informed employees that the restructuring would rely largely on natural attrition and by freezing hiring for vacant roles. A firm timeline for the layoffs, however, hasn’t been shared yet.

It’s not all bubbly in the wine business. Moët Hennessy has been the underperformer in LVMH’s otherwise sparkling portfolio. Organic sales dropped 9% in the first quarter, with both the U.S. and China — two major markets — showing weakened demand. And when the champagne isn’t flowing, it tends to ripple across the house of Louis Vuitton, Dior, and Dom Pérignon.

In a statement cited by the FT, LVMH said, “While Moët Hennessy’s business has returned to its 2019 level, Moët Hennessy announced yesterday its intention to adjust its organisation and gradually return to its 2019 staffing levels, primarily by managing its natural turnover and not filling vacant positions.”

Complicating matters, Alexandre Arnault — who was brought in last November to turn around the division — now faces fresh hurdles. With former U.S. President Donald Trump’s reintroduction of 20% reciprocal tariffs on EU goods, French exports like wine and spirits could face a chilly reception across the Atlantic.

And it’s not just talk. Last month, France’s wine and spirits exporters group warned of a potential sales dip in the U.S. in direct response to the tariff threat.

For now, Moët Hennessy’s future seems a bit less cheers and a bit more sigh — but in the ever-swirling world of luxury, fortunes (and fizz) can turn around quickly.