Key Points:
- Molson Coors is set to cut 400 salaried jobs by the end of the year as part of a plan to streamline operations under new CEO Rahul Goyal. This move will result in a 9% reduction in the company’s corporate workforce.
- The job cuts include positions that were already vacant due to earlier role prioritization efforts. Employees will also be offered buyout packages as part of the restructuring.
- This restructuring follows Molson Coors’ recent executive leadership changes, including the elimination of the chief commercial officer role.
Insights:
Beer producers like Molson Coors and Heineken are facing challenges in the current market landscape as consumer preferences shift away from alcohol. Heineken recently announced its decision to cut 400 jobs to reorganize its global headquarters.
Molson Coors is focusing on growing its beer brands such as Miller Lite and Blue Moon, as well as expanding into other categories like mixers, energy drinks, and non-alcoholic beverages.
CEO Rahul Goyal emphasized the need for the company to make bold decisions and move quickly in response to the evolving market conditions. The restructuring will enable Molson Coors to reinvest in priority brands and key initiatives to drive sustainable growth.
The company anticipates that severance payments and benefits for affected employees will amount to between $35 million and $50 million.
Similar to Molson Coors, other food and beverage companies like Nestlé are also implementing workforce reductions as part of broader transformation strategies to drive growth. Nestlé recently revealed plans to cut 16,000 positions, representing 6% of its workforce, under the leadership of CEO Philipp Navratil.