MillerCoors plans to cut by the end of October about 350 jobs which is 4.4 percent of all its employees in the United States. The staff reductions are across the organization and include 150 that had been held open or were cut earlier this year. The company said the measure is a consequence of "several years of volume declines amid a challenging industry, including a tough first half of 2018."
“We are moving quickly and decisively to get our business back on track,” MillerCoors CEO Gavin Hattersley told distributors in an email. “To accomplish this, we know we need the financial flexibility to invest in our brands and solutions at the right level, quickly capitalize on new opportunities, and maintain a robust marketplace presence. Our current fixed cost base limits our ability to do all this.”
In August, Molson Coors, the parent company of MillerCoors, released its quarterly results for the second quarter 2018. Worldwide brand volume was 25.7 million hectoliters and decreased 2.4 percent driven by declines in the U.S. and Canada. These were only partially offset by growth in Europe and International. Financial volume of 27.7 million hectoliters decreased 2.1 percent, and was adversely impacted by reductions in brand volumes and contract brewing. Global priority brand volume decreased 4.0 percent.
“We’re offering a voluntary severance program, which allows people who may be ready to move on the opportunity to do so with a generous package,” said MillerCoors spokesman Marty Maloney. “So it’s too soon to say at this point what the exact impact will be to each campus. Once we know who has elected to volunteer, leaders will review requests against the organizational design and determine how roles will be impacted.”
MillerCoors operates seven breweries in the U.S., each producing between 6 and 11 million barrels (7-13 million hl) of beer a year. The sites are evenly spread across the U.S. and comprise locations in Albany, Georgia; Elkton, Virginia; Fort Worth, Texas; Golden, Colorado; Irwindale, California; Milwaukee, Wisconsin and Trenton, Ohio.