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Brown‑Forman Corporation announced Tuesday that it is making series of strategic initiatives to position the company for continued growth in the dynamic global spirits market. These initiatives include restructuring the executive leadership team, implementing a workforce reduction affecting approximately 12% of the company’s global workforce, and closing the Louisville-based Brown‑Forman Cooperage. Any impact concerning job reduction at the Jack Daniel facility in Lynchburg has not been revealed.

“To enhance operational efficiency and agility, Brown‑Forman has made the difficult decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide,” their press release revealed. “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.”

As part of the move, Brown‑Forman will close its Louisville-based barrel-making operation, Brown‑Forman Cooperage, by April 25, 2025. The facility opened in 1945. In 2017, the company announced a $45-million modernization project at the facility that updated equipment and reduced workforce there by about 70 people.

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. The Louisville-based maker of spirits includes well-known brands like Jack Daniels, Old Forester and Woodford Reserve.

Moving forward, Brown‑Forman will source barrels from an external supplier to ensure a steady supply of the same high-quality barrels at a competitive price.

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.

“In 2025, Brown‑Forman celebrates 155 years of delivering Nothing Better in the Market. 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,” Lawson Whiting, President and Chief Executive Officer, said. “The 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.”

Reasons for the issues include a post-pandemic slowdown and the possibility of coming tariffs.

Along with cutting staff, Brown Forman has restructured its leadership across its brands.

The new appointments include Jeremy Shepherd being 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.

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