Big Changes at Molson Coors: What's Happening and Why?

Key Changes and Job Cuts

Molson Coors Beverage Company is implementing significant changes, including:

• Job Cuts: Approximately 400 jobs (9% of salaried workforce in the Americas) by the end of 2023.
• Restructuring Plan: Part of a broader strategy to streamline operations.

Challenges Facing the Industry

The company is navigating a tough environment:

• Economic Pressures: Inflation is reducing consumer spending.
• Tariff Issues: Unpredictability in costs due to tariffs.

Investment in Core Products

Despite the cuts, Molson Coors plans to invest in:

• Beer
• Non-alcoholic beverages
• Energy drinks

Cost of Restructuring: Expected to range between $35 million and $50 million in the fourth quarter.

Company Overview

• Global Presence: Breweries in Colorado and ownership of brands like Coors, Molson, and Miller.
• Workforce: Approximately 16,800 employees worldwide as of December 2024.

Recent Struggles and Leadership Changes

• Profit Warning: In August, the company forecasted a drop in annual profit, partly due to rising aluminum costs for beverage cans.
• Stock Performance: Shares remained stable in early trading.
• New Leadership: Rahul Goyal named as the new CEO, aiming to steer the company forward.