Dive Brief:
- Molson Coors will cut 400 salaried jobs by the end of the year, the company said Monday, part of a plan to create a “leaner, more agile” business under new CEO Rahul Goyal. The move will result in a 9% reduction in the beer giant’s corporate workforce.
- The cuts include “hundreds” of positions that were already open from the beer giant’s role prioritization efforts earlier in the year. Employees will also be presented with buyout offers as part of the restructuring, according to the announcement.
- The planned workforce reduction comes on the heels of Molson Coors’ restructuring its executive leadership team with the elimination of its chief commercial officer role.
Dive Insight:
Beer producers are struggling to adapt to a challenging market as more consumers turn away from alcohol. Last week, Heineken announced it was cutting 400 jobs to restructure its global headquarters.
Molson Coors has made it a priority to grow its beer brands, including Miller Lite and Blue Moon, while also expanding into other categories such as mixers, energy drinks and nonalcoholic beverages.
Goyal, who was appointed CEO earlier this month, said in a statement that though the company has made progress on its transformation, the tough environment is forcing the company to move “even faster.”
“To win with our customers and consumers and return to growth, we must move with urgency and make bolder decisions,” Goyal said. “We are moving quickly and intentionally on a long-term, achievable strategy that continues our journey to become a total beverage company and that we believe puts us on the path to sustainable growth.”
Molson Coors said the restructuring will allow it to better reinvest in its business including in priority brands and “must-win initiatives.” The company expects severance payments and post-employment benefits for affected employees to total between $35 million and $50 million.
Food and beverage companies have tapped new leaders to facilitate growth, with many of them moving fast to cut workers as part of larger transformation plans. Nestlé last week unveiled a plan to cut 6% of its workforce, or 16,000 positions, under recently appointed CEO Philipp Navratil.
