Another Kentucky Distillery Cuts Jobs as Whiskey Slump Continues

(Photo: Whiskey House)

America’s whiskey downturn has claimed another round of jobs, this time from an operation that describes itself as “the most advanced whiskey distillery in the United States.”

Whiskey House of Kentucky, a contract distillery in Elizabethtown founded by former Bardstown Bourbon Company executives, laid off about 30% of its workforce as slowing whiskey demand continues to ripple through the industry,

According to CEO David Mandell, 22 employees were affected by the reductions and will retain recall rights if business conditions improve.

“We were among the last contract manufacturers to make workforce adjustments, and we fully expect to be among the first to bring employees back as demand returns,” Mandell said, according to the Lexington Herald-Leader.

The company said affected employees will receive severance packages, continued benefits and assistance with job placement.

Whiskey House opened in July 2024 as a large-scale custom distillery producing bourbon and whiskey for third-party clients. The company was founded in 2021 by Mandell, John Hargrove and Daniel Linde, who previously helped build Bardstown Bourbon Company before departing to launch the new venture.

Mandell said the distillery remains operational and is currently running at roughly 60% of capacity.

“As an industry, we are navigating a cyclical slowdown, and our responsibility is to make thoughtful decisions that protect the long-term health of our company, our customers, and our employees,” he said.

Despite the layoffs, Mandell pointed to signs of improving demand and growth opportunities abroad.

“While current market conditions remain challenging, we are encouraged by the momentum we are seeing in customer demand, the progress of our international expansion, and the long-term prospects for the whiskey industry,” he said.

The layoffs add to a growing list of workforce reductions and production cuts across the American whiskey sector.

Over the past 18 months, major spirits companies including Brown-Forman, Suntory Global Spirits, MGP Ingredients and Diageo have announced job cuts or operational changes such as distillation pauses.

The slowdown comes as Kentucky distillers contend with softer domestic demand, international trade disruptions and a growing inventory surplus. According to the Lexington Herald-Leader, Kentucky warehouses now hold more than 16 million aging barrels of whiskey, while American whiskey production recently fell to its lowest level since 2019.

As for Whiskey House, the company says the cuts are intended to position the business for long-term growth while preserving financial flexibility during the downturn.