Brown-Forman, the leading exporter of U.S. spirits to the world, announced today plans to cut 12% of its global workforce of 5,400 employees, seeking to position the company for future growth amid softer sales.
The news comes on the heels of four straight quarters of sales declines for the Jack Daniels Whiskey maker. Last month, the company reported a Q2 2025 sales dip of 1% to $1.11 billion, with president and CEO Lawson Whiting cautioning investors the company is facing “so many potential scenarios and unknowns” with possible tariffs looming.
The move also comes as other major bev-alc companies – potentially including RNDC – reduce their own workforces.
“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,” said Whiting in a press release.
Additionally, Brown-Forman will shutter its Louisville-based cooperage in late April. Approximately 210 hourly and salaried employees will be impacted by the closure; those individuals are part of the 12% workforce reduction. The company was the only major spirits company still producing its own barrels, but moving forward, it will source barrels from an external supplier, per the announcement.
The sale of the cooperage will generate more than $30 million in proceeds in addition to the projected $70 to $80 million in annual cost savings resulting from the restructuring efforts.
According to the announcement, Brown-Forman expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closure.
“I want to express my gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” said Whiting in a statement. “We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come.”
The company is also restructuring its leadership team to “accelerate growth across its brands, business, and workforce.” This includes the appointment of Jeremy Shephard, who previously led Brown-Forman’s U.S. and Canada commercial division, as CMO, and Michael Masick as president of Americas.