Molson Coors Beverage Company announced plans to reduce its salaried workforce in the Americas by approximately 400 positions, representing nine percent of employees by the end of the year as part of a corporate restructuring initiative. The affected workforce includes employees in the U.S., Canada, and select Latin American countries. The restructuring specifically targets salaried non-union employees across the Americas, with no offices or breweries facing closure at this stage.
The decision aligns with the company’s strategy to focus on its core product categories, including beers, non-alcoholic beverages, and energy drinks. Molson Coors anticipates one-time charges between $35 million and $50 million US in the fourth quarter as a result of the restructuring. The company currently employs around 16,800 individuals globally, with local beer production in Canada and the U.S. under brands like Coors, Molson, and Miller.
In response to market challenges such as cautious consumer spending, inflation, and tariff-related uncertainties affecting the alcohol industry in the U.S., Molson Coors aims to optimize its operations and investments. The company had previously projected a decrease in annual profits due to potential tariff impacts on aluminum costs for beverage can production. Recent leadership changes, including the appointment of Rahul Goyal as the new CEO, have been implemented to steer the company through these developments. As of early trading, Molson Coors’ stock remained stable amidst the restructuring announcement.