As major spirits groups struggle with slow sales, Pernod Ricard is next to cut jobs.
The French spirits group has begun an internal project to create a “more agile and simplified organization,” according to internal company presentation slides reported on by Reuters yesterday.
Pernod Ricard intends to organize its brands into two primary divisions with restructuring leading to “departures,” according to the report. The company plans to group brands into two main units, named Gold and Crystal, allowing for the bundling of administrative tasks versus operating brands individually.
A statement from Pernod Ricard said it is working “on an ongoing basis to adapt our organization 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 organization aligned with our strategic objectives and the current evolution of our business.”
The group added that “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.”
The extent of job losses remains uncertain. The changes are expected to be implemented in the final three months of this year, according to Reuters.
The owner of Absolut and Martell Cognac is not the only major spirits group to reorganize following sales declines. Earlier this year, Brown-Forman announced it was letting go of 12% of the company’s 5,400-person global workforce and closing its Louisville-based cooperage. In May, Moet Hennessy, the wine and spirit business of LVMH group, announced it will shrink its workforce by more than 10%, about 1,200 employees.
In April, Pernod Ricard reported a 3% revenue dip for Q3 2025. Earlier in the year, the group revised its full-year outlook due to a 25% sales decline in China during the first half of fiscal 2025 and ongoing tariff uncertainty.