Pernod to axe jobs in restructuring plans
Martell owner Pernod Ricard will restructure into a “more agile and simplified organisation”, which will result in job cuts.
According to a report by Reuters, Paris-headquartered Pernod Ricard announced plans internally to group its business into two divisions, Gold and Crystal.
When asked for a comment, a spokesperson for Pernod Ricard did not confirm the move to two divisions or how many jobs would be affected.
The statement said: “At Pernod Ricard, we work on an ongoing basis to adapt our organisation and ways of working to the fast-evolving business environment.
“That is why we have announced to all our employees an internal project aimed to create a more agile and simplified organisation aligned with our strategic objectives and the current evolution of our business.
“These changes imply the launch of local consultation processes with our social partners and employees where necessary, therefore we cannot comment any further at this stage.”
Pernod Ricard’s portfolio includes brands such as Absolut Vodka, Chivas Regal whisky, Martell Cognac and Jameson Irish whiskey.
In April, Pernod Ricard reported a 3% revenue decline for the third quarter of fiscal 2025 with a 4% drop for its ‘strategic international brands’.
Sales of Martell have been particularly affected by China duty free’s removal of Cognac from shelves.
In February, Pernod Ricard scaled back its full-year outlook due to a 25% sales drop in China during the first half of the group’s 2025 financial year, and uncertainty over tariffs.
Major players scale back
Pernod Ricard is one of a number of international spirits players restructuring in the wake of slowing sales.
In January this year, Jack Daniel’s maker Brown-Forman announced it would reduce its 5,400-strong global workforce by approximately 12% and close its cooperage in Kentucky. Last week, the US firm saw organic full-year revenue rise by 1% despite a decline in its fourth quarter and struggling Tequila sales.
In March, Diageo announced it would no longer be bringing new brands into the Distill Ventures accelerator programme, which led to job losses.
Meanwhile in May, the Financial Times reported that Moët Hennessy (the wine and spirits arm of French conglomerate LVMH) plans to cut its workforce by 10%, equal to around 1,200 people.
Fellow French spirits company Rémy Cointreau saw organic full-year sales plunge by 18%.
The Rémy Martin producer recently withdrew its sales targets for 2029-30 due to uncertainties over US-China tariffs and a lack of recovery in the States.
Related news
Pernod Ricard: flavoured gin ‘here to stay’
