Brown‑Forman Corporation has announced it is restructuring its executive leadership team, cutting 12% of its global workforce and closing its cooperage.

The move comes during a difficult period for the drinks industry as a result of slowing sales and rising materials costs.

Around 600 jobs will be cut from its workforce while its leadership structure in Asia Pacific will be consolidated with other markets.

President and CEO Lawson Whiting said: “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.”

New executive leadership team appointments

Brown‑Forman said it has restructured its executive leadership team to “accelerate growth across its brands, business, and workforce”.

“This includes consolidating and streamlining its commercial structure to leverage greater synergies and effectiveness in its markets,” the company said.

Among the new appointments, effective as of today: 

• Jeremy Shepherd has been named Chief Marketing Officer. Shepherd previously led the company’s USA & Canada commercial division.
• Michael Masick has been named President, Americas. Masick will continue commercial leadership for Mexico, South and Central America, and the Caribbean. In his expanded role, he will add USA & Canada to his remit.
• Yiannis Pafilis has been named President, Europe, Africa, Asia Pacific. Pafilis currently leads teams across Europe. In this expanded role, he will add Africa, the Asia Pacific region, and global travel retail.
• Chris Graven has joined the executive leadership team as Chief Strategy Officer. Graven has held roles in Brown‑Forman’s HR, finance, marketing, and commercial organizations in her 20 years with the company.

Workforce reduction

To “enhance operational efficiency and agility”, Brown‑Forman said it had made the difficult decision to reduce its global workforce by approximately 12% of its 5400 employees worldwide.

“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 company said.

“This organizational evolution will simplify and streamline Brown‑Forman’s structure, allowing it to become a more agile and efficient organization and reinvest in the capabilities, technologies, brands, and people that will drive future growth.”

Brown‑Forman cooperage closure

Brown‑Forman will close its Louisville-based barrel-making operation, Brown‑Forman Cooperage, by April 25, 2025. This closure, which will impact approximately 210 hourly and salaried employees, is part of the overall 12% workforce reduction. Brown‑Forman will offer severance, outplacement services, and benefits consistent with their terms of employment. 

Moving forward, Brown‑Forman will source barrels from an external supplier.

Collectively, these actions are projected to deliver approximately $70 to $80 million in annualized cost savings, a portion of which is expected to be reinvested to accelerate growth.

In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.

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

Brad Madigan joins Brown-Forman Australia