Around 300 employees will be relocated to Chicago or will lose their positions.
In an effort to save almost money after a poor-performing third quarter, Molson Coors is taking some drastic measures. It's laying off 500 workers worldwide and consolidating its U.S., Canada, Europe, and International business units into just two, North America and Europe.
As a part of that consolidation, its Denver office will be no more. By closing the Denver office and others, the company stands to save about $150 million. Unfortunately, that means that around 300 employees in the Denver location will be forced to relocate to Chicago, the site of the North American headquarters, to keep their positions and several positions will also be eliminated.
The Golden brewery will remain untouched. None of the planned cuts and moves will affect its operations or employees. It is actually slated for major renovations, as are many of the other Molson Coors breweries across the nation.
“For nearly 150 years we have brewed great beers in Colorado, and we will continue to brew great beers in Colorado for hundreds of years to come,” Gavin Hattersley, Molson Coors’ CEO and president, said in Wednesday’s news release. "This investment will modernize the brewery to allow for more flexibility, enable us to move with pace and deliver new products to meet changing consumer preferences."
Molson Coors President and CEO Gavin Hattersley lays out details of a revitalization plan “designed to streamline the company, move faster, and free up resources to invest in our brands and our capabilities.” https://t.co/kkDPlpMmHB— Molson Coors (@MolsonCoors) October 30, 2019
The savings from office consolidation will go into improving the companies digital marketing strategy, as well as to fund innovative new products, such as canned wine and more. The company is actually dropping the "Brewing" from its official name early next year. It will be now known as Molson Coors Brewing Co., to try to show consumers that it makes more than just beer.
While Asian and European sales of Coors products were up, U.S. consumers are increasingly turning to the brand new products hitting shelves, like hard seltzers, craft beers, and more. It has taken a toll on many breweries across the nation, and Molson Coors is just one of the many. It reported a third-quarter loss of about $402 million this year.
"Our business is at an inflection point," Hattersley said in the news release. "We can continue down the path we’ve been on for several years now, or we can make significant and difficult changes necessary to get back on the right track."
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