Brown-Forman Corp. will close its cooperage in Louisville, Ky., and lay off about 12% of its global workforce — as well as restructure a portion of its executive leadership team — as part of a group of moves announced that aim to spur future growth for the spirits manufacturer.
Approximately 650 employees out of 5,400 workers worldwide will be let go as part of the strategic initiatives Brown-Forman is undertaking. The company said it would support those employees with severance, outplacement services and other benefits. Brown-Forman did not share any indication as to what locations, divisions or departments would be more heavily impacted by the workforce reduction.
That said, the plan to shut down the Louisville barrel-making operation, Brown-Forman Cooperage, by Apr. 25, 2025, will result in job losses for about 210 hourly and salaried employees, which the company says is included in the 12% workforce reduction initiative. Brown-Forman plans to source barrels from an external supplier after the facility’s closure.
Brown-Forman also has restructured its executive leadership team, with the new appointments effective Jan. 14, 2024, as announced in the release.
Jeremy Shepherd, who had led the USA & Canada commercial division, will be the chief marketing officer. Michael Masick, currently the commercial leader for Mexico, South and Central America, and the Caribbean, will add president, Americas, to his role. Yiannis Pafilis will add leadership responsibilities over Africa, the Asia Pacific region and global travel retail to his oversight of Europe, as president of those regions. Lastly, Chris Graven will join the executive leadership team as chief strategy officer after 20 years with the company in the HR, finance, marketing and commercial organizations.
Brown-Forman projects that these initiatives will deliver about $70 million to $80 million in annualized cost savings, “a portion of which is expected to be reinvested to accelerate growth,” the company’s announcement noted. Sale of the cooperage’s assets is expected to also produce more than $30 million in proceeds as well.