LVMH is implementing a 10% workforce reduction in its Moët Hennessy division, affecting around 1,200 employees, as it grapples with slow luxury demand, increased costs, and global trade tensions. Despite sales returning to pre-pandemic levels in 2019, operational costs have surged by 35%, prompting leadership to acknowledge a difficult recovery. Moët Hennessy's revenue has weakened in 2024, particularly in the US and China, resulting in a 9% drop in organic sales in Q1. The situation is exacerbated by ongoing trade tariffs impacting key products.
âThis was an organisation that was built for a much larger size of business,â Guiony reportedly told staff. âPeople realise ... that this [rebuilding sales] is not going to happen anytime soon.â
Moët Hennessy has seen revenues falter in 2024 amid weakening demand in its critical US and Chinese markets, with organic sales falling 9% in Q1.
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