Beer maker Molson Coors Beverage Company will slash roughly 400 jobs, or 9% of its American salaried workforce, by the end of the year as part of a corporate restructuring plan, the company announced in a statement Monday.
The mass layoffs come as the Chicago-based brewing company announced in August that it expected net sales to tumble between 3% and 4% this year — blaming weaker beer demand and “indirect tariff impacts” on aluminum.
The company’s earnings before taxes were also projected to dramatically plummet between 12% to 15%, creating a bleak forecast for investors.
Molson Coors will reinvest in its core category of beer and expand its arsenal of premium mixers, non-alcoholic beverages, and energy drinks in the restructuring.
The brewery giant expects to be slapped with charges of $35 million to $50 million in the fourth quarter, relating to cash severance payments and post-employment benefits that are expected to be rolled out over the next year.
“These one-time costs will vary based on specific employee elections during the workforce reduction,” the company said.
“These are never easy decisions, and I am grateful to those who will be departing for their many contributions and to those who will continue to guide us on our journey toward growth,” President and Chief Executive Officer Rahul Goyal said in a statement.
The company, which packages millions of beers in aluminum cans that are sold under brand names such as Coors Light, Miller Lite, and Blue Moon, had a total of 16,800 employees globally as of December 2024, according to its annual report.
Molson Coors and many other US alcohol companies were walloped in June when the Trump administration doubled import duties on aluminum from 25% to 50%.
Unlike previous trade policies that carved out exemptions for close allies, the new tariff hit virtually everyone, including traditional partners like Canada and Mexico.
Gavin Hattersley, the conglomerate’s previous chief executive, had cited the “higher-than-expected indirect tariff impacts” on aluminum pricing as a key factor in deteriorating the company’s bottom line.
With Post wires.
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