Brown-Forman, the parent company of Jack Daniel’s whiskey and Woodford Reserve bourbon, is cutting approximately 700 jobs, about 12% of its workforce, due to a decline in spirits sales. The layoffs will help the company save around $70-$80 million annually, which it plans to reinvest in growth initiatives.
To offset rising costs, Brown-Forman has increased prices in recent years. However, this move has led to decreased spending on premium spirits among consumers. In response, the company is closing a Louisville cooperage where wooden barrels are produced for aging whiskey and bourbon. This change will allow the company to source barrels from an external supplier at a competitive price.
The job cuts come amid concerns over the health risks of alcohol consumption, as recently highlighted by the US Surgeon General’s warning about cancer risk. Brown-Forman’s shares have lost 30% of their value in the past year, reflecting the industry’s declining sales.
As part of its restructuring efforts, Brown-Forman will focus on enhancing operational efficiency and agility. CEO Lawson Whiting expressed gratitude to affected employees for their dedication and contributions.
Source: https://edition.cnn.com/2025/01/14/business/brown-forman-layoffs/index.html