Brown-Forman to cut 12% of workforce

Brown-Forman

Brown-Forman on Tuesday announced a corporate restructuring to cut 12% of its global workforce of 5,400 employees.

In a news release, B-F did not detail how those cuts would affect specific locations, including Lynchburg.

"Brown-Forman is deeply committed to supporting departing employees with comprehensive transition agreements that include severance, outplacement services, and other benefits to help them through this career change," the statement said.

Brown-Forman also announced that it would close its barrel-making operation in Louisville by April 25. This decision will result in the loss of 210 jobs.

Brown-Forman’s stock dropped 33.5% last year, according to FactSet data, its worst performance since 1974.

“I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” President and CEO Lawson Whiting said 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.”

Brown-Forman brands include Jack Daniel's, Woodford Reserve, Herradura, el Jimador, Korbel, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. The company operates in 170 countries worldwide.

B-F said the cuts are projected to save Brown-Forman approximately $70 to $80 million annually, and the sale of the Louisville cooperage could bring it approximately $30 million.

“In 2025, Brown-Forman celebrates 155 years of delivering ‘Nothing Better in the Market,’ ” Whiting said. “We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive. 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.”

Brown-Forman also announced changes to its executive leadership team:

  • Jeremy Shepherd has been named as Chief Marketing Officer. Shepherd previously led the company's USA and Canada commercial divisions.
  • Michael Masick has been named President of the Americas. In his expanded role, Masick will continue to lead commercial activities in Mexico, South and Central America, and the Caribbean and expand to include the U.S. and Canada.
  • Yiannis Pafilis has been named President of Europe, Africa, and Asia Pacific. In his expanded role, Pafilis will lead teams across Europe and add Africa, the Asia-Pacific region, and global travel retail.
  • Chris Graven has joined the executive leadership team as Chief Strategy Officer. She has been with the company for 20 years, previously holding roles in its HR, finance, marketing, and commercial organizations.

In February 2024, Brown-Forman announced the sale of its cooperage in Trinity, Ala. – located about 10 miles west of Decatur – to Independent Stave Company. As part of a strategic relationship between the companies, the cooperage continues to make barrels for the Jack Daniel Distillery. ISCO renamed it Alabama Cooperage from Jack Daniel Cooperage.