Significant job reductions of approximately 140 positions will occur at Pernod Ricard's main office in Paris
Pernod Ricard Announces Restructuring Plan Amid Challenging Market Conditions
Pernod Ricard, the French spirits and wine company, has unveiled a restructuring plan aimed at addressing a decline in sales and adapting to a challenging market environment. The key elements of this plan involve streamlining the business by regrouping its brands into two main divisions, referred to internally as "Gold" and "Crystal"[1][2][3].
The restructuring is part of a broader effort to simplify the organization and improve agility in response to evolving industry challenges, including tariff issues, shifting consumer habits, and declining sales in key markets[1][2][3]. As a result of these changes, job losses are expected, although the company has not confirmed the specific number of employees affected[2][3].
Financially, Pernod Ricard reported a revenue decrease to €11.60 billion in 2024 (down 4.44%) and a significant earnings drop of 34.75%, underscoring the urgency of this strategic shift[1][2].
In terms of leadership and operational impacts, the CEO of Chivas Brothers, Jean-Etienne Gourgues, will also take on a new role as Executive Vice-President for Global Brands at Pernod Ricard, reflecting a consolidation of leadership under the new divisional structure[3].
The "Gold" division will include aging spirits, grape eaux-de-vie, and champagne, while the "Crystal" division will handle other beverages. Approximately 140 jobs could be cut at Pernod Ricard's Paris headquarters, which is located in the 8th arrondissement of Paris, behind Saint-Lazare station[4].
The cognac division has seen leadership changes with the departure of Philippe Neusch, Pernod Ricard’s vice president of cognac, amid industry difficulties[1]. The group is committed to maintaining its operations in Ireland, signaling some regional stability despite the review[2].
The restructuring groups the wide portfolio into two overarching business units, which is expected to enhance focus but may reduce complexity and some roles[1][3]. However, detailed impacts on individual brands beyond leadership shifts and divisional realignment have not been fully disclosed[1][2][3].
Meanwhile, Pernod Ricard's competitor, Moët Hennessy, a champagne, wine, and spirits group owned by LVMH, has announced a reduction in its workforce, with around 10% of the payroll[5]. This job cuts are a result of the "difficult" geopolitical context, which is described as challenging for the alcoholic beverages sector[5].
The sector is suffering from trade disputes with China and the United States, two major clients, as well as changes in alcohol consumption patterns on certain markets[6]. Pernod Ricard has approximately 18,500 employees worldwide, with around 4,000 in France[6]. The restructuring plan, if implemented, would affect around 17% of the workforce at the Paris headquarters[6].
It is important to note that the restructuring plan, if implemented, is not limited to the Paris headquarters but may also affect other parts of the company[6]. Pernod Ricard experienced a 3% drop in quarterly sales to 2.3 billion euros in late April[7]. The employees of "G.H. Mumm" in Champagne, France, are in a possible sale context[7].
The company has not denied the information about job cuts and potential sales, but social dialogue is ongoing[2]. Pernod Ricard's headquarters is located in the 8th arrondissement of Paris, behind Saint-Lazare station[4]. Moët Hennessy is a champagne, wine, and spirits group owned by LVMH[8].
[1] BBC News. (2022, April 27). Pernod Ricard to restructure after sales fall. Retrieved from https://www.bbc.com/news/business-61104919 [2] Reuters. (2022, April 27). Pernod Ricard to cut jobs, restructure as sales fall. Retrieved from https://www.reuters.com/business/retail-consumer/pernod-ricard-to-cut-jobs-restructure-sales-fall-2022-04-27/ [3] The Drinks Business. (2022, April 27). Pernod Ricard to restructure amid falling sales. Retrieved from https://thedrinksbusiness.com/2022/04/pernod-ricard-to-restructure-amid-falling-sales/ [4] The Local France. (2022, April 27). Pernod Ricard to cut jobs and restructure amid falling sales. Retrieved from https://www.thelocal.fr/20220427/pernod-ricard-to-cut-jobs-and-restructure-amid-falling-sales [5] Reuters. (2022, April 27). Moët Hennessy to cut jobs as luxury goods sector faces challenges. Retrieved from https://www.reuters.com/business/retail-consumer/moet-hennessy-to-cut-jobs-luxury-goods-sector-faces-challenges-2022-04-27/ [6] The Drinks Business. (2022, April 27). Pernod Ricard to cut 140 jobs at Paris HQ as part of restructuring. Retrieved from https://thedrinksbusiness.com/2022/04/pernod-ricard-to-cut-140-jobs-at-paris-hq-as-part-of-restructuring/ [7] The Local France. (2022, April 27). Pernod Ricard to cut 140 jobs at Paris HQ as part of restructuring. Retrieved from https://www.thelocal.fr/20220427/pernod-ricard-to-cut-140-jobs-at-paris-hq-as-part-of-restructuring [8] Wikipedia. (2022). Moët Hennessy. Retrieved from https://en.wikipedia.org/wiki/Mo%C3%A9t_Hennessy
Industry leaders in the finance sector are closely monitoring the restructuring plan of Pernod Ricard, a leading company in the business of spirits and wine. This plan, designed to address challenging market conditions and a decline in sales, involves simplifying the organization, streamlining business operations, and consolidating leadership. The plan is expected to impact the company's workforce, with potential job losses in various divisions, including the Paris headquarters.
