LVMH to Cut 1,200 Jobs at Moët Hennessy

LVMH will cut 1,200 jobs—about 12% of its global workforce—at its wine and spirits division Moët Hennessy, as the luxury giant grapples with slumping sales and growing trade tensions in key export markets in China and US, according to an internal company memo.

The news was announced by Moët Hennessy CEO Jean-Jacques Guiony, who said the move would return the division’s headcount to pre-pandemic levels. The layoffs come as LVMH faces broader challenges, with both its fashion and wines and spirits businesses under pressure.

Moët Hennessy, which owns brands including Moët & Chandon, Krug, Cloudy Bay, Hennessy and Belvedere, saw organic sales fall 8% in the first quarter of 2025, the weakest department among the group’s business units. Spirits sales—led by Cognac and brandy—plunged 17%, while wine slipped 1%, driven by weakened demand in China and the US, as we have reported.

The cuts also reflect the growing impact of geopolitical risks on the sector. In the U.S., President Donald Trump has threatened to impose a 20% tariff on European goods. Meanwhile in China, a provisional anti-dumping tariff of up to 39% on European brandy has already taken effect, with a final ruling delayed until July. The measures have hit French Cognac exports particularly hard, affecting producers such as Hennessy, Rémy Cointreau, and Martell.

In an earlier attempt to mitigate the impact of Chinese tariffs, Moët Hennessy explored bottling Cognac locally in China—but the proposal was abandoned after fierce protests from its workforce.

The layoff announcement follows a similar move by Rémy Martin, which said it would furlough two-thirds of its staff in response to U.S. tariffs and China’s ongoing anti-dumping investigation.

LVMH’s broader luxury business is also feeling the strain. The group was overtaken by Hermès in April as the world’s most valuable luxury brand, underscoring growing investor concerns over softening consumer demand.

According to Chinese customs data compiled by us, China imported US$57.14 million worth of brandy in the first quarter of 2025, a 77.3% drop from a year earlier. French shipments accounted for 96.8% of the total.