LVMH's Moet Hennessy to cut workforce by 10%, FT reports
LVMH group's wine and spirits business Moet Hennessy will shrink its workforce by more than 10 per cent, about 1,200 employees, the Financial Times reported on Thursday, citing an internal video message from the division's CEO, Jean-Jacques Guiony.
Guiony and his deputy, Alexandre Arnault, son of LVMH owner Bernard Arnault, told staff at Moet Hennessy this week that they planned to cut the workforce back to 2019 levels, the newspaper said, adding that a timeline for the job cuts was not immediately known.
Organic sales at Moet Hennessy, LVMH's weakest division, dropped 9 per cent in the first quarter, hit by a slump in its key U.S. and Chinese markets. This dragged other sectors of the luxury goods empire, which encompasses brands from Louis Vuitton to Moet & Chandon.
"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," LVMH said, according to the FT report.
LVMH and Moet Hennessy did not immediately respond to Reuters' request for comment.
Alexandre Arnault, who has links with U.S. President Donald Trump's family, was assigned the job of helping turn around the group's wine and spirits business in November 2024, a task that could be more difficult now, as 20 per cent reciprocal tariffs imposed by Trump on all European Union goods could have an impact on the company.
Last month, the French wine and spirits exporters group said that the sales of French wine and spirits were expected to slide in the U.S. following Trump's tariff announcement.
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Straits Times
35 minutes ago
- Straits Times
How a Singaporean in the US is grappling with pricey Hainanese chicken rice under Trump's tariffs
Shelves at the local ShopRite grocery store. Spring season means more imported fresh fruit from Latin American markets at relatively cheap prices. PHOTO: GRACE NG Commentary How a Singaporean in the US is grappling with pricey Hainanese chicken rice under Trump's tariffs – There is one catastrophic scenario I worry about with US President Donald Trump's second term in office: bad food. I had read about the unimpressive cuisine associated with Mr Trump's establishments, from Thanksgiving platters at his Mar-a-Lago club in Florida that resembled frozen TV dinners to gala dishes deemed worse than budget airline food by crypto investors in the President's meme coin. But I was not chuckling during a recent meal at a cafeteria in Pennsylvania, which served pale yellow turds. 'Eggs,' pronounced the server. As I stared in confusion, he whispered: 'Powdered eggs with some tofu. Good stuff – soybeans made in the USA .' This unpalatable swop of protein sources was accepted without controversy – possibly because I was attending an Asian church retreat, where tolerance for tofu and austerity is not in short supply. Expectations of egg substitution may also have been baked into consumers' expectations, since egg prices in the US have risen about 49 per cent in one year and could get nudged up further by tariffs on imports from markets such as Brazil, Mexico and Turkey. But it was also a sign that all of us, from the sheepish server to second-generation Asian-Americans and relative newcomers such as myself, have accepted that higher tariffs and wider price substitution are an unavoidable part of our foreseeable future. Price substitution, as I explained to my two little kids, inevitably takes place when the price of Hainanese chicken rice goes up by about US$3 (S$3.90) to US$15.99 on my food delivery app. So now, instead of that beloved Singaporean dish, we are ordering invented-in-America General Tso chicken with grown-in-America white rice for US$11.99, which increased in price by only $1. Alas, the only lesson learnt about economic trade-offs was this: saving US$4 was not worth the wailing and flailing that ensued. Taking stock of tariffs So we set off for the nearby Asian grocery store, which is the closest to a Sheng Siong supermarket I can find, to stock up on Prima Taste Fragrant Chicken Rice Paste for US$8.99 per packet. We were struck by the rows of unevenly empty shelves that reflect the tariff scenario analyses hoarders before me had undertaken. Hong Kong love letter rolls, Chengdu hotpot paste and Want Want rice crackers were wiped out. Apparently, they sold out soon after US tariffs on China goods reached as high as 145 per cent. But even after those rates were lowered to 10 per cent after a bilateral meeting in Geneva on May 12, restocking was slow. Empty shelves are seen as a woman shops for items at a Dollar Tree store on April 28 in Alhambra, California. PHOTO: AFP It was anyone's guess when they would get restocked, the store owner said in Cantonese. Some small businesses are still waiting for shipments, since larger US companies have rushed to stockpile goods to hedge against tariff volatility. The de minimis exemption for low-value imports from China had expired in May. Fortunately for my young kids, Khong Guan biscuits are fully stocked. That is not surprising, because tariffs of just 10 per cent were imposed on Singapore even before the Trump administration placed a 90-day pause – which expires on July 8 – on reciprocal tariffs, maintaining an interim baseline of 10 per cent on imports. We are also counting our blessings that most food prices have not returned to pandemic peaks. Bulk donations of baked ziti – using imported pasta and cheese – to the local food pantry, for example, still cost a third less than during supply chain snarls in 2021 . Delay, pre-empt or panic buy? Playground chit-chat among parents in our community has recently shifted away from whether to take the 'Wait till Eighth' pledge to hold off giving smartphones to our 'anxious generation' of kids until they are in eighth grade, or 14 years old. We now joke that tariffs of 25 per cent on Apple products might get the parents more eager to sign on, since they might have to wait until their kids are in the eighth grade for iPhones to become affordable again. There is also concern that new 50 per cent tariffs on metal could further hike the price of cars, home renovations, lawn tools and canned drinks. On June 4, tariffs on steel and aluminium imports were doubled to 50 per cent. This applies to nearly all trading partners, except the UK, which secured an exemption. The choice of whether to allocate more budget to pre-emptively stock up on canned beer or school supplies, both of which look likely to get more expensive, can be an agonising one for harried parents. A friend's garage sale: Nintendo and game consoles snapped up, while clothes remain. PHOTO: GRACE NG Coping mechanisms: Hacks and swops Many people wait until the 'back-to-school' sales tax holidays in August and spend an hour or two in stores hunting for, say, 18 highly specific items, from Crayola 12-count markers to composition books with marbled black covers – and some beer to tide them over the tedium. Until 2025 , I just paid a premium for pre-packaged school supply kits to save time and hassle. A few days ago, I experimented with adapting a writer's 'AI (artificial intelligence) Grocery Assistant'. Using Google AI chatbot Gemini and Google Shopping , it found the lowest prices for school supplies across retailers such as Walmart and Target, generated links and automatically added the items to shopping carts. The Gemini-generated shopping list saved me about US$12 compared with buying a kit. Not shabby at all for me, but not enough to buy certain toys. A Jurassic World Tyrannosaurus rex plastic toy increased to US$55 on May 21 from US$39.92 on April 27, according to photos circulated by Walmart workers about price hikes of as much as 38 per cent. The photos surfaced in my WhatsApp chat group with a few Singaporeans living in the US. 'Alamak, my boy just started watching Jurassic World cartoons,' moaned one of them. 'That means very soon he will want to buy every dino in the show! Should I start hunting for dinos at the garage sales first or on eBay?' With so much uncertainty around where tariffs will eventually land, most of our talk is just 'swop talk' rather than action plans. We are swopping notes with our families back in Singapore about how to deal with elevated costs of imported foods and how to buy quality second-hand items online without being scammed. Shelves at the Asian supermarket, with Khong Guan biscuits fully stocked. PHOTO: GRACE NG Christmas uncertainty: Naughty or nice prices? The art of price substitution can get one only so far, with limited visibility on where tariff levels will head to after July 8. It is simply impossible to budget for or plan too many purchases ahead. All the supermarkets in my area, from Walmart to Trader Joe's and German-owned discount chains, such as Lidl and Aldi, look fully stocked. But as a May 7 Bloomberg headline warned: Empty Store Shelves Might Be Coming Sooner Than You Think. One spectre is potential shortages of Halloween and Christmas products. The tariffs had earlier choked off production of those festive items in Chinese manufacturing hubs such as Yiwu, but the pause reportedly spurred a partial filling of US orders. But with some of these Chinese factories already diverting goods to European and African buyers, doubts remain about whether the procurement elves for Halloween costumes and Christmas toys can fully fulfil American wish lists in 2025 – and at what spooky price. Thankfully, my kids, who are Star Wars Lego aficionados , are still little enough to be content with makeshift outfits. After watching hacks shared by YouTube creators who specialise in Lego modifications, they 'customised' Star Wars-themed Lego mini-figures with acrylic markers, spare parts and capes made out of red balloons. That saved them the US$11.99 for a custom mini-figure sold on Party supplies at the family-owned Ollin Party Store in the San Fernando Valley area of Los Angeles, California on April 16. PHOTO: AFP Reinvention to cope with change The ingenuity of the YouTube creators reminded me that the sanest response to unpredictable tariffs may be to train our energies not just on price substitution, but also on reinventing ways to meet immutable consumer priorities: cheap goods, speedy access, diverse choices and personalised offerings. Amazon founder Jeff Bezos was quoted as saying: 'People always ask me what's going to change. But what's more important is what's not going to change. 'You can never imagine a world in which consumers don't want cheap prices, fast shipping and big selection. It's impossible to imagine a world where people don't want that. Because of that, you can put so much confidence into investing in those things, knowing they'll always be relevant in the future.' One can only hope that entrepreneurs, communities and families can leverage new ideas, tools and technologies fast enough to outpace price shocks. I am holding my breath on when the tariff turmoil will settle. But in a nod to what is unchanging – our love of Singaporean food – I will be learning how to make decent chicken rice and kaya with egg substitutes. Grace Ng is a Singaporean writer in New Jersey and a former Straits Times China correspondent. Join ST's Telegram channel and get the latest breaking news delivered to you.
International Business Times
2 hours ago
- International Business Times
Gold Climbs on Softer Inflation Data as Fed Rate Cut Hopes Rise
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International Business Times
2 hours ago
- International Business Times
Oil Prices Hit 7-Week High on US-China Trade Optimism and Tightening of Supplies
Oil prices rose to nearly their highest level in two months on Wednesday. The rally followed news that U.S. President Donald Trump had confirmed that an agreement had been reached with China on a trade deal, awaiting the sign-off by leaders of the two countries. The development raised hopes of reducing tensions between the world's two biggest economies, lifting expectations for increased oil demand. Brent crude rose $1.15, or 1.7%, to $68.02 a barrel at 12:49 GMT. U.S. West Texas Intermediate (WTI) climbed $1.31, or 2%, to $66.29, its highest since early April. Market analysts say the trade deal helps cap a key downside risk to oil markets, at least for now. But there remains some cloudiness, since it is unclear how the deal will affect overall economic growth and energy use over the long term. Meanwhile, the complexities were increased by geopolitical tensions with Iran. President Trump said he was skeptical that Iran would agree to stop enriching uranium as part of a nuclear deal. Iran has, in turn, warned of military retaliation should talks fail. Those tensions are also helping to keep Iranian oil supplies constrained by American sanctions. Meantime, OPEC+ is poised to raise output by 411,000 barrels a day next month. The reduction is part of their strategy to gradually release output cuts for a fourth consecutive month. Still, internal demand in oil-exporting countries, including Saudi Arabia, may capture a lot of the increased supply, providing some floor to global prices. That echoed some economic signals in the United States. Consumer inflation grew less than expected in May, which supported speculation that the Federal Reserve could cut interest rates by September. The reduced interest rate discourages saving and encourages borrowing—both things that might accelerate economic activity and lift energy consumption. Oil inventory stats in the U.S. are awaited as one of the key near-term drivers. Early estimates indicate that crude inventories dropped by 370,000 barrels last week, a decline that, if borne out in official data, could further tighten the market.
