Beer maker Molson Coors to slash 9% of it's American workforce in restructuring plan

Core Viewpoint - Molson Coors Beverage Company is implementing a corporate restructuring plan that includes cutting approximately 400 jobs, representing 9% of its American salaried workforce, due to declining beer demand and increased costs from aluminum tariffs [1][3][7]. Financial Performance - The company anticipates a decline in net sales between 3% and 4% for the year, attributed to weaker beer demand and indirect tariff impacts on aluminum [1][7]. - Earnings before taxes are projected to decrease significantly, with estimates ranging from a 12% to 15% drop, indicating a challenging outlook for investors [3]. Restructuring and Costs - The restructuring plan will incur one-time charges estimated between $35 million and $50 million in the fourth quarter, primarily related to severance payments and post-employment benefits [4]. - The company plans to reinvest in its core beer category while also expanding its offerings in premium mixers, non-alcoholic beverages, and energy drinks [3]. Tariff Impact - The company has faced significant challenges due to the Trump administration's decision to double import duties on aluminum from 25% to 50%, affecting its cost structure [8][10]. - Previous CEO Gavin Hattersley highlighted the unexpected indirect tariff impacts on aluminum pricing as a major factor contributing to the company's financial difficulties [11].