As a result, the company will lay off 12% of its employees—approximately 650 people worldwide. This decision comes just a month after Brown-Forman issued a slightly optimistic forecast for 2025. However, the U.S. market remains challenging due to inflation and rising consumer prices.
In December, Brown-Forman anticipated benefiting from the "normalization of industry trends", expecting improved sales and operating income in the short term. However, this projection did not materialize.
Currently, the company's shares are at their lowest level in 10 years, and in 2024, they recorded their worst performance, declining by 33%. In addition to job cuts, which Brown-Forman estimates will result in up to €70 million in severance costs, the company also plans to sell its wooden barrel factory in Louisville, expecting to generate an additional €30 million from the sale.
