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Conflicts with China and the United States, falling into alcohol consumption … Pernod Ricard must eliminate 140 positions at its headquarters, or 17% of its workforce

Pernod Ricard launched a restructuring plan in June, the group headquarters would be the first worried about the workforce.

Almost 140 positions should be eliminated at the Parisian headquarters of Pernod Ricard, who announced a reorganization plan in a context of general crisis in the spirits, according to the information of the world published on Friday, and that the group has not denied.

The number two of the spirits had internally announced the launch of a restructuring plan, with a consultation with its departures for several months, “where it is necessary”, at the headquarters, but not only.

The group headquarters, located behind the Saint-Lazare station in Paris, should lose almost 140 people, or around 17% of the workforce, according to the information communicated internally and transmitted by Le Monde. It is added that these outputs would mainly receive executives and should be carried out on the basis of the volunteer.

In France, the Martell brand, installed in Cognac, must also be affected by about thirty position positions, while in Champagne GH Mumm employees have the expectation, in a context of possible transfer.

Requested by AFP, Pernod Ricard has not denied this information, while social dialogue continues.

Pernod Ricard claims about 18,500 employees, including around 4,000 in France.

Five to two divisions

With this reorganization plan, the group would be reorganized into two divisions, instead of five: the division called “gold” that includes aged alcohols, grape waters and champagne, and the “glass” division for other drinks (white alcohols, openings …), explained a source close to the group in June.

Pernod Ricard had announced again at the end of April a decrease in its quarterly sales, from 3% to 2.3 billion euros, now its prognosis for the annual fall in its income in a “difficult” geopolitical context.

The entire sector suffers customs conflicts with China and the United States, two main clients, but also changes in alcohol consumption modes in certain markets.

The context already has a social impact, with the intention expressed by Moët Hennessy (champagne, wines and spirits of LVMH) to reduce its workforce: the press that evokes 10% of the payroll.

Author: HC with AFP
Source: BFM TV

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