Molson Coors Layoffs: Up To 500 Jobs Cut Amid Reorganization, Rebranding

Molson Coors (TAP) has announced that it is overhauling its business, which will result in the loss of 400 to 500 employees as the brewing company consolidates operations and offices.

Molson Coors, which also renamed itself to Molson Coors Beverage Company, said it will be closing its Denver office, now making Chicago its North American operational headquarters while moving several offices from around the U.S. to its Milwaukee facility.

Because of the organizational changes, the company expects to reduce its overall headcount by 400 to 500 employees globally, which it said will primarily occur in its reporting segments and at the corporate level.

The company will also consolidate its U.S., Canada, and corporate center into a North America business unit while the Europe business unit will be operated by a European-based team with local leadership, commercial, supply chain, and support functions all falling under the group.

The Latin America business will now fall under the North America business division with the Africa and Asia Pacific units now reporting to the European business group. These changes will go into effect in January 2020.

The company expects the reorganizational costs to be around $120 to $180 million spread throughout 2020 and 2021. The consolidation of offices and positions are expected to be completed by the end of fiscal 2021.

Molson Coors said it is making the changes to its business structure to achieve “top-line growth” and improve efficiency. The company said it will continue to invest in what it calls “Above Premium” beer brands, along with added investments in its existing brands, new innovations, and possible acquisitions where it makes sense, while also growing outside the beer category.

Additionally, Molson Coors said it will invest in digital capabilities as well as modernizing its Golden, Colorado, brewery based on its cost-savings through the reorganization of the company.

"Our business is at an inflection point. We can continue down the path we’ve been on for several years now, or we can make the significant and difficult changes necessary to get back on the right track,” Gavin Hattersley, Molson Coors president and chief executive officer said in a statement.

“Our revitalization plan is designed to streamline the company, move faster, and free up resources to invest in our brands and our capabilities. Through it, we will create a brighter future for Molson Coors,” he added.

The news of the reorganization comes as Molson Coors reported its Q3 earnings, which saw net sales reach $2.8 billion, down 3.2% and 2.0% in constant currency, which it attributed to volume declines. Volume decreased by 2.4% for worldwide brands and 5.5% for financial volume due to declines in all segments based on “challenging industry dynamics,” the company said.

Shares of Molson Coors were down 1.43 percent as of 11:50 a.m. ET on Wednesday.