MillerCoors to Slash 350 Jobs

MillerCoors to Slash 350 Jobs

Chicago-based MillerCoors plans to cut 350 salaried jobs by the end of next month as part of a restructuring, the company announced.

MillerCoors is also offering a voluntary severance package to employees who decide on their own to step down.

About 500 people are employed at the company’s headquarters in the Loop.

MillerCoors also has large offices in Milwaukee and Golden, Colo., and operates seven breweries in the U.S.

The company’s restructuring comes after a tough summer for beer sales industrywide and amid years of declining sales volume for MillerCoors specifically. The beer industry has lost share to wine and spirits in recent years. And though large brands like Bud Light, Coors Light and Miller Light still represent top-selling beers in the U.S., they have struggled to regain their glory of days past.

There have been other challenges too. Aluminum costs spiked after President Donald Trump imposed 10 percent tariffs on aluminum imports in March and, separately, a commercial truck driver shortage has increased freight costs.

MillerCoors is expected to raise prices on most of its products because of those cost pressures, according to some of the largest liquor store chains.

Now MillerCoors is working to cut costs, too.

“We are moving quickly and decisively to get our business back on track. To accomplish this, we know we need the financial flexibility to invest in our brands and solutions at the right level, quickly capitalize on new opportunities, and maintain a robust marketplace presence,” MillerCoors CEO Gavin Hattersley said in an email to distributors Tuesday.

Last month, MillerCoors announced it was pulling the plug on Two Hats, a fruit-flavored lager aimed at younger drinkers, after less than a year on the market. The company said at the time that it would be focusing resources on Coors Light and Miller Lite, the two flagship brands.

Beer sales improved industrywide in July but remain down compared with last year. Domestic beer shipments are down 2.3 percent through July compared with last year, according to the most recent data available from the Beer Institute, the trade group that represents the largest beer companies in the U.S.