Brown-Forman has lined up a reduction of its global workforce, with almost 650 of its 5,400 employees expected to go.
The announcement, issued earlier today, has been described by the Jack Daniel’s owner as a “difficult decision”. The cut, which amounts to 12% of its headcount, will support Brown-Forman in becoming “a more agile and efficient organisation and reinvest in the capabilities, technologies, brands and people that will drive future growth”.
“Brown-Forman is deeply committed to supporting departing employees with comprehensive transition agreements that include severance, outplacement service, and other benefits to help them through this career change,” the group added.
Last month’s results announcement saw sales in the six months to the end of October come in flat, despite a rise of 3% in the period’s second half.
Part of the reduction will come from the closure of the Brown-Forman Cooperage in Kentucky, which was also announced today. Barrels will be sourced externally going forward once the closure completes at the end of April.
While costs from the move are expected to total between US$60m and $70m, the brand owner estimates annual savings from the reduction of up to $80m.
“I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” said CEO Lawson Whiting. “We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come.”
At the same time, Brown-Forman has redrawn its ‘executive leadership team‘, which includes the switch from three commercial divisions to two. Having left the group last month, chief brands officer Matias Bentel is to be replaced by the current US & Canada president, Jeremy Shepherd, who will take the title of CMO. Meanwhile, Chris Graven will fill the newly-created position of chief strategy officer, continuing her 20-year career with the business, most recently as senior VP of people strategy, analytics & rewards.
Finally, ’emerging international’ president Michael Masick becomes Americas president, adding the US & Canada to his regional remit, and Yiannis Pafilis, the head of Europe since last January, is the new president of Europe, Africa & Asia Pacific as well as global travel retail.
