Brown-Forman to reduce workforce by 12%, close Louisville Cooperage

Brown-Forman (BF.B) (BF.A) announced a series of strategic initiatives. These initiatives include a workforce reduction affecting approximately 12% of the company’s global workforce, and closing the Louisville-based Brown-Forman Cooperage. Brown-Forman has made the decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide. Brown-Forman will close its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25. 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 barrels at a competitive price. Collectively, these actions are projected to deliver approximately $70M to $80M in annualized cost savings, a portion of which is expected to be reinvested. In addition, the company will receive more than $30M in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60M to $70M in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.