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Diving overview:
- Molson Coors lays off 400 employees The company announced this as part of its plan to create a “leaner, more agile” business under new CEO Rahul Goyal by the end of the year. The move will result in a 9% reduction in the beer giant’s corporate workforce.
- The cuts include “hundreds” of positions already left vacant due to the beer giant’s role prioritization efforts earlier this year. According to the announcement, employees will also be offered an acquisition offer as part of the restructuring.
- The planned job cuts come after Molson Coors eliminated executives and reorganized its management team. Chief Commercial Officer Role.
Dive Insights:
Beer producers are struggling to adapt to a difficult market as more consumers turn away from alcohol. last week, Heineken announces 400 layoffs We decided to reorganize our global headquarters.
Molson Coors has made it a priority to grow its beer brands, including Miller Lite and Blue Moon, while expanding into: Other categories like mixersEnergy drinks and non-alcoholic drinks.
Goyal appointed CEO earlier this monthsaid in a statement that although the company has made progress on its transformation, the difficult environment is forcing it to move “faster.”
“We need to move with urgency and make bolder decisions if we want to win with our customers and consumers and return to growth,” said Goyal. “We continue our journey to become an integrated beverage company and are quickly and intentionally pursuing a long-term, achievable strategy that puts us on a path to sustainable growth.”
Molson Coors said the restructuring will allow it to better reinvest in the business, including priority brands and “must-win initiatives.” The company expects severance and severance pay for affected employees to total between $35 million and $50 million.
Food and beverage companies have brought in new leaders to fuel growth, and many of them are moving quickly to reduce staff as part of larger transformation plans. Nestlé announced its plans last week: Reduce workforce by 6%Or 16,000 positions for recently appointed CEO Philipp Navratil.
