Molson Coors Beverage Co. is to make up to 500 jobs redundant as it retires the MillerCoors name and looks to consolidate business across the U.S.
This morning, President and CEO Gavin Hattersley unveiled a mass restructuring and revitalization plan aimed at streamlining the organization and reinvesting $150 million annually.
The will be renamed Molson Coors Beverage Co. effective January 1. It will consolidate to two business units from four, combining its U.S. arm, MillerCoors, with its Latin America business and Molson Coors Canada to form a North America unit, and fold the remainder of Molson Coors International into Molson Coors Europe.
"Our business is at an inflection point," Hattersley said in a statement. "We can continue down the path we’ve been on for several years now, or we can make the significant and difficult changes necessary to get back on the right track."
In total, the company expects job cuts of between 400 and 500 salaried positions, which will come primarily in North America and from Molson Coors International, the company said in a blog post.
Molson Coors will close its Denver office and make Chicago its North American commercial headquarters.
The move will enable the company "to move much more quickly with an integrated portfolio strategy," Hattersley said in a note sent this morning to employees.
Molson Coors said it will reinvest savings into its business — with a focus on investing in its core brands, growing its portfolio of above-premium beers and expanding beyond beer.
The changes he outlined, which include a new corporate leadership team, are "designed to streamline the company, move faster and free up resources to invest in our brands and our capabilities."
He added: "As the world around us rapidly changes and the nature of competition intensifies, our business performance is lagging. We’re over-indexed in declining segments, our core brands have seen years of volume losses, and we haven’t had the resources needed to fully invest behind our innovations."