The Brown-Forman Corporation has announced a series of strategic initiatives to position the company for continued growth in the dynamic global spirits market.
The company’s portfolio of premium brands includes the Jack Daniel’s family of brands, Woodford Reserve, Herradura, The Glendronach and more.
The announcement includes restructuring the executive leadership team, implementing a workforce reduction affecting approximately 12% of the company’s global workforce and closing the Louisville-based Brown-Forman Cooperage.
To enhance operational efficiency and agility, Brown-Forman has made the difficult decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide.
Brown-Forman will close its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25, 2025. This closure, which will impact approximately 210 hourly and salaried employees, is part of the overall 12% workforce reduction. Brown-Forman will offer severance, outplacement services and benefits consistent with their terms of employment.
Moving forward, Brown-Forman will source barrels from an external supplier to ensure a steady supply of the same high-quality barrels at a competitive price.
Collectively, these actions are projected to deliver approximately US$70 to US$80 million in annualised cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than US$30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately US$60 to US$70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.
