After the LVMH wine and spirits business, Moët Hennessy, has proven to be the weakest division in the first quarter- with a decline in sales of nine percent- the group now seems to be considering drastic measures.
As the Financial Times reports on Thursday, citing an internal video speech by Jean-Jacques Guiony, Moët Hennessy is to reduce his workforce by more than ten percent, around 1,200.
Guiony and his deputy Alexandre Arnault, son of LVMH owner Bernard Arnault, are said to have told employees this week that they are planning to reduce the number of employees to the 2019 level. So far there has been no specific schedule for the job cuts.
When the quarterly figures were published in mid-April, LVMH in particular cited the main reason for the decline in sales in these core markets-the USA and China-especially as a result of weaker cognac sales.
Fashionunited asked LVMH to comment.