Latest news with #Guiony
CNA
05-05-2025
- Business
- CNA
Moet Hennessy to cut 10% of workforce as luxury slowdown bites
Moet Hennessy will cut its workforce by more than 10 per cent as the newly installed executives at LVMH's weakest division seek to reinvigorate its performance. Jean-Jacques Guiony, Moet Hennessy chief executive, and his deputy Alexandre Arnault told staff at the wine and spirits division last week that they planned to cut the workforce back to 2019 levels. Current headcount of 9,400 would need to be reduced by about 1,200, Guiony said, adding that the division's revenues were at 2019 levels even though costs had increased by 35 per cent since then. 'This was an organisation that was built for a much larger size of business,' Guiony said, in an internal video seen by The Financial Times. 'People realise . . . that this [rebuilding sales] is not going to happen anytime soon.' The reductions would largely be achieved through natural attrition and moving some staff into vacancies in other parts of the organisation, said Guiony and Arnault. They did not give a timeline for the job cuts, which were first reported by French news outlet La Lettre. A Moet Hennessy spokesperson said: 'While Moet-Hennessy's business has returned to its 2019 level, Moet-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.' Guiony and Alexandre Arnault, son of Bernard, LVMH's chief executive and chair, arrived at Moet Hennessy in February with a mandate to improve performance amid a depressed global market for alcohol sales. LVMH's drinks division grew rapidly between 2019 and 2022 but has been under pressure since. Moet Hennessy's organic sales fell 9 per cent in the first quarter, compared with a 3 per cent drop across LVMH as a whole. Alexandre Arnault told staff that LVMH had seen a few crises over the years but what made this a 'bit unique' was that all of its biggest divisions were struggling at once. 'Usually at LVMH when wines and spirits are not going well, fashion is doing well or some [other part of the business] is performing differently. Right now things are not going extremely well,' he said. Internal company documents, seen by the Financial Times, show that headcount reductions were on the agenda at Moet Hennessy before its current leadership was in place. Hiring freezes have been in place since the second half of 2023 and managers were looking to cut hundreds of roles last year. At least 70 out of a target of about 100 people were let go in China in 2024, according to communications seen by the Financial Times. 'Things are bad but they will become better. This is a cycle,' Guiony told staff, adding that US tariffs added another layer of uncertainty.
Fashion Network
03-05-2025
- Business
- Fashion Network
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Time of India
03-05-2025
- Business
- Time of India
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13 per cent at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10 per cent first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20 per cent charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Reuters
02-05-2025
- Business
- Reuters
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
PARIS, May 2 (Reuters) - LVMH ( opens new tab will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. STAFF REDUCTION Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau ( opens new tab and Brown-Forman (BFb.N), opens new tab cut jobs in the United States at the start of this year, while France's Pernod Ricard ( opens new tab, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Yahoo
02-05-2025
- Business
- Yahoo
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
By Mimosa Spencer and Dominique Patton PARIS (Reuters) -LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. STAFF REDUCTION Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
