Brown-Forman to Cut 12% of Workforce and Close Barrel Plant as Alcohol Sales Decline

The Jack Daniel's parent company cites shifting consumer habits, health warnings, and tariff risks as key challenges behind the decision.

Brown-Forman will lay off nearly 700 employees, representing 12% of its global workforce, and shut down its Louisville-based barrel-making facility by April 25.
The company attributes the decision to declining alcohol consumption, with whiskey sales dropping 1.2% in 2023—the first decline since 2002.
Health warnings, including a recent U.S. Surgeon General advisory linking alcohol to cancer risks, and changing consumer preferences have contributed to reduced demand.
Brown-Forman expects $70–$80 million in annualized cost savings from the cuts, with some funds reinvested to drive future growth, and plans to sell its cooperage assets for over $30 million.
The company also faces potential trade challenges, with the European Union set to reinstate a 50% tariff on American whiskey exports in March unless a new agreement is reached.