It’s been just over a year since Moët Hennessy Louis Vuitton (LVMH) completed its acquisition of Tiffany & Co and according to CEO Antony Ledru, more than 60% of the original workforce has since left the company.
The acquisition, costing more than $15 billion (A$19.9 billion), was completed in January 2021.
It didn’t take long before it became clear that LVMH was planning to shake things up, with Jeweler reporting in February that the company had held a “town hall” meeting for Tiffany & Co. employees during which management highlighted a shift in focus toward “high-end sparkling jewelry” and away from product lines in Sterling silver.
Shortly thereafter, Tiffany & Co. canceled its New York Times print advertisement, which had appeared on page three of the newspaper since the 1890s.
In an interview with Daily Women’s Clothing (WWD) last week, LVMH CEO Antony Ledru said the overall aim of the changes at Tiffany and Co was to adapt to the modern business countryside.
“We live in a rapidly changing world,” he said.
“That’s an important skill set for a lot of people coming from the fashion world, where there’s a lot of drops and you have to react quickly. That’s what you need in hard luxury now.
“We are moving quickly. I believe that moving quickly and being efficient is not an enemy of success.
Tiffany & Co has a rich history as one of the world’s most iconic jewelry brands, with the company founded in the 1830s and growing into a $4.4 billion ($5.8 billion) business organization. Australian dollars) per year.
It ultimately paled in comparison to that of LVMH, which in 2019 operated more than 5,000 stores and generated more than $50 billion (A$66.5 billion) globally from its headquarters in Paris.
Prior to the acquisition, Tiffany & Co. operated over 300 stores worldwide with over 13,000 employees. In one year, more than two-thirds of this workforce has been replaced.
background reading: TIMELINE: At the heart of the Tiffany & Co. and LVMH merger
A third of the workforce is now made up of LVMH employees, while the other third comes from outside. Ledrus said WWD that while big changes would continue to take place, the brand would still retain its unique American identity.
“There is a kind of generosity around Tiffany, more than a traditional European jeweler,” he said.
“You walk into a Tiffany store, and we really think you should walk away with a Blue Box because of this wide offer. It’s about, ‘When I come to Tiffany, I feel welcome and comfortable.’ It’s part of the brand’s dream, that we have this universal approach.
Ledru worked for Tiffany & Co from 2013 to 2014, before joining Louis Vuitton. He was named CEO following the acquisition.
He also said WWD that he plans to remodel 30 to 50 stores a year.
Jeweler contacted the ocean division of Tiffany & Co for comment on whether Australia had experienced similar staff departures; at the time of publication, they had not responded.
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