Reuters reported on Monday that Molson Coors, the parent company behind Coors, Foster’s, Miller High Life, Peroni, Sol Cerveza, and the whiskey brand Blue Run, is cutting 9% of its workforce as part of a corporate restructuring plan. 400 jobs will be on the chopping block by the year’s end.
According to The Hill, Molson Coors is looking to be “leaner” and “more agile” in the Americas. The Hill reported that during a second-quarter earnings call with investors, volume in America was down by 4% and net sales dropped by 2.6%.
“We’ve made progress on our transformation journey, but given the environment, we must transform even faster,” said Molson Coors CEO and President Rahul Goyal in an announcement from the company, according to The Hill. “To win with our customers and consumers and return to growth, we must move with urgency and make bolder decisions. We are moving quickly and intentionally on a longterm, achievable strategy that continues our journey to become a total beverage company and that we believe puts us on the path to sustainable growth. We look forward to sharing more detail on this strategy in the coming months.”
According to the Financial Post, some Canadian employees will be laid off. A spokesperson for the brand shared that the move did not have anything to do with the trade war between both countries.
“No, this move is not driven by tariffs,” the Molson Coors Spokesperson said, according to The Financial Post. “It’s part of a broader strategy to streamline operations across the Americas and reinvest in growth areas like core brands, premium mixers, nonalcoholic drinks and energy beverages.”
Per Reuters, Molson Coors aims to focus more on its core beers, energy drinks, and non-alcoholic beverages. The beverage conglomerate aims to rack up charges somewhere between the $35 to $50 million range by the end of Q4.
Potential financial challenges associated with aluminum tariffs, according to Market Watch, and shifting consumer behavior from an uncertain economic climate seem to be the drivers behind the aggressive layoff strategy. The outlet implied that the modern consumer has less to spend on drinking for special occasions or nights out.
“Drinking-age consumers continue to engage with beer at similar levels across all generations, and compared to historical levels,” said Chief Executive Gavin Hattersley in a statement. “It’s the occasions that are left.”
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