14.01.2025 22:15:00
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Brown-Forman Announces Workforce Reductions And Closure Of Cooperage In Strategic Restructuring
(RTTNews) - Brown-Forman Corporation (BFB), a U.S.-based spirits and wine producer headquartered in Louisville, Tuesday announced a series of significant operational changes, including the closure of its cooperage facility in Louisville and a global reduction in workforce.
These measures are part of the company's broader strategic initiatives aimed at ensuring sustained growth and competitiveness in the dynamic global spirits market.
The restructuring of the company will involve a realignment of its executive leadership team, a reduction in workforce, and the permanent closure of its cooperage on MacLean Avenue, located near Louisville's airport. This decision will lead to the loss of approximately 210 jobs at the Louisville site, with the closure slated for completion by April 25.
In an effort to mitigate the impact on affected employees, Brown-Forman will offer severance packages, outplacement assistance, and comprehensive benefits in accordance with their employment terms.
Moving forward, the company plans to source its barrels from external suppliers, ensuring an uninterrupted and competitively priced supply for its production needs.
The company has estimated the total cost of these changes, including severance packages and related expenses, will range between $60 million and $70 million. However, Brown-Forman expects to offset some of these costs with more than $30 million from the sale of the cooperage facility.
Globally, the company will reduce its workforce by approximately 12%, resulting in the loss of roughly 650 positions across its 5,400-strong employee base. Brown-Forman has reiterated its commitment to supporting those affected by the layoffs, offering robust transition agreements that include severance, outplacement services, and additional resources designed to assist employees in navigating this change.
This restructuring marks a strategic pivot for Brown-Forman, as it seeks to optimize its operations and strengthen its position in an increasingly competitive global marketplace. While the company faces near-term challenges, its focus remains on long-term efficiency and sustainability within the rapidly evolving spirits industry.
BFB closed Tuesday's trading at $34.45 down 0.06 percent or $0.02 on the New York Stock Exchange.
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