Brown-Forman Corporation has announced a series of strategic initiatives aimed at fostering growth in the global spirits market. The company plans to restructure its executive leadership team, reduce its workforce by about 12%, and close its Louisville-based Brown-Forman Cooperage.
"In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive," stated Lawson Whiting, President & Chief Executive Officer. "Today's announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come."
The restructuring involves new appointments within the executive leadership team. Jeremy Shepherd has been named Chief Marketing Officer; Michael Masick takes on the role of President, Americas; Yiannis Pafilis becomes President, Europe, Africa, Asia Pacific; and Chris Graven joins as Chief Strategy Officer.
The workforce reduction affects approximately 12% of Brown-Forman's global employees. The company is committed to supporting those impacted with severance packages and outplacement services.
Additionally, Brown-Forman will close its barrel-making operation by April 25, 2025. This closure is part of the broader workforce reduction plan affecting around 210 employees. The company will source barrels from an external supplier moving forward.
These actions are expected to yield $70 to $80 million in annualized cost savings. The company anticipates incurring charges between $60 to $70 million related to severance and other costs associated with these changes.
"I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions," said Whiting. "We are committed to supporting them through this transition."
Further information about Brown-Forman can be found on their website.