Brown-Forman Corporation (NYSE:BFA,BFB) announced today a 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.

Workforce Reduction

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. 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.

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.

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 to ensure a steady supply of the same high-quality barrels at a competitive price.

New Executive Leadership Team Appointments

The company also 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.

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 HR, finance, marketing, and commercial organizations in her 20 years with the company.

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 & Chief Executive Officer, said in a news release. “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.

“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 continued. “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.”

Read more: Consumer Education Driving Whiskey Market, Per Brown-Forman Scientist

About Brown-Forman

Brown-Forman Corporation has been building spirits brands for more than 150 years. The portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, Old Forester  and more. Learn more at brown-forman.com.