Molson Coors Lays off 9% of North American Workforce as the Company Struggles Against Declining Sales, Aluminum Tariffs

(Photo: AP Photo/Ed Andrieski)

On Monday, the Molson Coors Beverage Company announced a restructuring plan that will eliminate roughly 400 salaried positions in North America by the end of December. The company has yet to confirm which jobs will be cut, though hourly and union employees will reportedly be exempt from layoffs.

The announcement comes on the heels of an August earnings report in which the Chicago-based brewer cut its net sales forecast by 3% to 4%. Then-CEO Gavin Hattersley attributed the slump to macroeconomic trends, underperformance within the U.S. and “higher-than-expected” indirect tariff impacts on aluminum.

The company expects to incur between $35 million and $50 million in cash severance payments and post-employment benefits as it begins laying off employees before the end of the year.

“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,” President and CEO Rahul Goyal said in a news release. “We are moving quickly and intentionally on a long-term, achievable strategy that continues our journey to become a total beverage company and that we believe puts us on the path to sustainable growth.”

Time will tell how the layoffs impact Molson Coors’ many products, subsidiaries and partnerships. The company says that the restructuring intends to refocus on “priority brands and must-win initiatives,” paying special attention to its beer portfolio, mixers, nonalcoholic beverages and energy drinks. Those would likely comprise product lines like Coors, Miller, Blue Moon and Keystone, as well as recent launches like Vizzy Hard Seltzer. Partner brands include Dwayne “The Rock” Johnson’s ZOA Energy and Coca-Cola’s Simply Spiked.

The company did not mention any priorities for its spirits portfolio. Its in-house brands include Five Trail, a blended American whiskey, and Barmen 1873 Bourbon. In 2023, Molson Coors acquired the cult-hit Blue Run Spirits, a Kentucky-based bourbon and rye brand best known for its limited-edition drops.