Moët Hennessy Toxic Culture Lawsuit & Restructuring.
Moët Hennessy, the esteemed wines and spirits division of luxury conglomerate LVMH, is currently navigating a complex period marked by significant legal challenges, a comprehensive workforce restructuring, and a strategic recalibration aimed at bolstering its market position.
Sexual Harassment Lawsuit Illuminates Workplace Culture Concerns
The company is presently embroiled in a high-profile sexual harassment, gender discrimination, and unfair dismissal lawsuit.
Filed by former chief of staff Maria Gasparovic, the legal action alleges a “toxic” work environment characterized by bullying and a “boys club” culture.
Ms. Gasparovic contends she was dismissed after raising concerns about alleged misconduct by senior colleagues.
While Moët Hennessy has publicly disputed the claims, asserting Ms. Gasparovic’s dismissal stemmed from alleged personal misconduct and initiating a defamation counterclaim, reports from various media outlets indicate that at least 20 employees have taken long-term sick leave in 2024 due to stress and bullying.
Several other employees have reportedly come forward with harassment complaints.
“Moët Hennessy takes all allegations of misconduct very seriously. We are committed to fostering a respectful and inclusive workplace for all our employees and are cooperating fully with the legal process.” sai Moët Hennessy Spokesperson (Source: FT, May 2025)
Workforce Reductions Signal Strategic Overhaul Amidst Economic Headwinds
Moët Hennessy has announced plans to cut approximately 1,200 jobs worldwide, roughly 13% of its total workforce as part of a broader strategic restructuring.
The company aims to bring staffing levels back to those of 2019, responding to declining sales and a 35% increase in operating costs since that year. While revenue has returned to pre-pandemic levels, rising expenses have put pressure on profitability, prompting the workforce reduction.
“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.” commented Jean-Jacques Guiony, CEO of Moët Hennessy (Source: Reuters, May 2025)
The reductions are anticipated primarily through natural attrition and by not filling vacant positions, with a hiring freeze in effect since late 2023. This restructuring falls under the purview of new leadership, including CEO Jean-Jacques Guiony (formerly LVMH CFO) and Deputy CEO Alexandre Arnault (son of LVMH Chairman Bernard Arnault), who assumed their roles in February 2025.
“Give us 100 days to wrap our heads around it and understand the business, because it’s a business that will need a lot of restructuring… I’m sure they’ll get everything back on the growth track. Let’s give them two years to show what they can do.” Bernard Arnault, Chairman and CEO of LVMH, speaking about Moët Hennessy’s new leadership (Source: Reuters)
This operational adjustment comes in response to challenging market conditions, with Moët Hennessy’s organic sales declining 9% in Q1 2025, making it the weakest-performing division within LVMH. The decline is largely attributed to softening consumer demand in key markets such as the United States and China.
Redefining Strategy
The new leadership’s strategy emphasizes a more conservative and focused approach, prioritizing the company’s core, well-established brands, including Hennessy cognac and Moët & Chandon champagne. This strategic pivot involves re-evaluating recent acquisitions and streamlining operations to enhance efficiency.
“If a bottle of Moët crosses the USD 60 mark, we risk losing volume from a vital segment.” Anne-Laure Bismuth, HSBC analyst, commenting on pricing challenges faced by Moët Hennessy (Source: Wine-Intelligence, May 2025)
Despite the internal challenges, Moët Hennessy continues to engage in strategic brand partnerships, such as its recent collaboration with Fulham Pier as the Official Champagne, Rosé, and Cognac Partner.
The company also maintains a commitment to sustainability initiatives, particularly concerning viticulture and soil health, aligning with broader ESG considerations within the luxury sector.
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