The Molson Coors Beverage Company is set to reduce its U.S. salaried workforce by about 400 positions, which accounts for 9%, by the year’s end. This move is part of a larger corporate restructuring plan, announced in a statement on Monday.
These layoffs follow a previous announcement in August where the Chicago-based brewery projected a 3% to 4% decline in net sales for the year. This downturn has been attributed to reduced beer demand and the effects of indirect tariffs on aluminum.
The company anticipates a significant drop in pre-tax profits, estimated between 12% and 15%, casting a gloomy shadow over investor sentiment.
Molson Coors plans to refocus on its primary beer offerings while also diversifying its product lineup to include premium mixers, non-alcoholic drinks, and energy beverages.
In the fourth quarter, the firm expects to incur charges ranging from $35 million to $50 million related to employee severance and packages set for implementation next year.
“These one-time costs will vary based on the specific employees chosen during the attrition period,” the company explained.
President and CEO Rahul Goyal remarked, “These aren’t easy decisions. We appreciate those who have contributed significantly, whether it’s in retirement or ongoing guidance as we navigate growth.”
As of December 2024, the company, known for brands like Coors Light, Miller Lite, and Blue Moon, employed a total of 16,800 individuals globally.
The Trump administration’s move to double aluminum import tariffs from 25% to 50% in June impacted many U.S. beverage firms, including Molson Coors. Unlike earlier trade policies that offered exemptions to allies, the new tariffs broadly affected most countries, including traditional trade partners like Canada and Mexico.
The former CEO, Gavin Hattersley, underscored the “greater-than-expected impact of indirect tariffs” on aluminum as a significant contributor to the company’s financial struggles.
