Molson Coors Beverage Company is planning to reduce the workforce of its Americas business by 9% as its CEO looks to “make bolder decisions” in a bid to return to growth.
In a statement yesterday (20 October), the brewing major said it expects to cut roughly 400 roles across its Americas unit by the end of December as part of a restructuring plan.
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The move comes just a month after Rahul Goyal stepped up to the role of president and CEO from his previous post as chief strategy officer.
Goyal said: “We’ve made progress on our transformation journey, but given the environment, we must transform even faster. To win with our customers and consumers and return to growth, we must move with urgency and make bolder decisions.
“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.”
The brewer expects to record restructuring charges of $35m to $50m, largely tied to cash severance and post-employment benefits, mostly in the fourth quarter of 2025.
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By GlobalDataRelated cash outflows are expected over the subsequent 12 months.
The restructuring follows a rejig of its executive structure earlier this month which saw the group announce the departure of its chief commercial officer.
At the time, the move at the time appeared to be part of wider changes at the top of the company.
In a post on LinkedIn, Goyal then said that the business was to begin “realigning [its] leadership team at Molson Coors and in some cases, our organisational structure – to drive accountability and set us on the path toward future growth”.
He added: “The changes include removing layers and providing marketing, sales and commercial capabilities in the Americas with a direct line to me.”
Molson Coors said the latest restructure is designed to “enhance” its capacity to reinvest in the business, with a focus on “priority brands and must-win initiatives”.
The group also said it was looking to direct the “right level of resources” nearer to customers and end consumers as looks to return to growth, focusing on its beer portfolio and moving into related areas like premium mixers, non-alcoholic drinks and energy drinks.
The Coors Light brewer’s “core power brands” include Miller Lite, Coors Banquet, and Molson Canadian. Its “above premium” labels include Madrí Excepcional, Staropramen, and Leinenkugel’s Summer Shandy.
In August, Molson Coors cut its sales and earnings outlook for the second time this year.
Second-quarter results to 30 June showed lower net sales, volumes and operating income, although net income edged higher.
Net sales declined 1.6% to $3.2bn, or 2.6% on a constant-currency basis.
Financial volume, covering owned or “actively managed” brands, fell 7%.
Operating income decreased 2.7% to $583.6m, while net income attributable to Molson Coors rose 0.2% to $428.7m.
