Tiffany & Co’s job cuts rebranded as 'promotions outwards' by CEO Bernard Arnault

In a groundbreaking innovation in corporate communication, LVMH CEO Bernard Arnault has introduced a new way to describe layoffs—employees aren’t being dismissed; they’re being “promoted outwards.”

During a recent earnings call, Arnault, the head of the world’s largest luxury conglomerate, praised Meta CEO Mark Zuckerberg’s recent decision to lay off thousands of employees based on performance, likening it to necessary restructuring efforts at Tiffany & Co., an LVMH acquisition.

“I spoke with Mark, and we both agree—this is not about job cuts,” Arnault explained. “It’s about giving employees the opportunity to embrace new challenges beyond our organizations. They’re being promoted outwards, so to speak.”

The concept, which some might call a bold rebranding of layoffs, is the latest in a long tradition of corporate euphemisms designed to soften the impact of workforce reductions. Meta, which recently announced plans to cut 3,600 jobs under the guise of “raising the bar on performance management,” is among several tech giants embracing more creative terminology. Amazon, for example, has previously referred to its job reductions as “unregretted attrition.”

For LVMH, the approach was particularly relevant to Tiffany’s, which Arnault described as a “sleeping beauty” that required an awakening post-acquisition. “When you’re used to sleeping for ten years, and then suddenly you’re expected to be fierce, some simply cannot adapt,” he stated. “Unfortunately, we were not able to keep everyone.”

While LVMH has not disclosed the number of employees impacted by its restructuring at Tiffany’s, the shift in language signals a broader corporate trend: layoffs are out; strategic exits are in.

This reframing, however, raises questions about the implications for corporate culture and employee morale. Research suggests that workforce reductions, regardless of terminology, can result in decreased trust, lower engagement, and negative reputational impacts. According to the Harvard Business Review, layoffs often fail to achieve their intended cost-saving or efficiency-enhancing objectives. Additionally, economic historian Stephen Mihm has warned that mass layoffs, despite their corporate popularity, often lead to long-term business challenges rather than solutions.

Yet, in a world where perception is everything, terminology matters. “Rightsizing,” “streamlining,” and now “promotions outwards” offer leaders a way to frame difficult business decisions in a more palatable light. Whether employees view their involuntary exits as a career elevation remains to be seen.

As companies continue to redefine layoffs, one thing is clear: the corporate dictionary is evolving.