By Ian Neubauer
Brown-Forman Australia has said it will not be affected by a plan announced by its US-based parent company to cut 6 per cent of its global workforce as a result of deteriorating economic conditions.
“I can confirm that there are a number of job cuts with Brown-Forman business mainly in the US and Mexico. But the Australian operations will be unaffected by the change,” Brown-Forman Australia managing director, Michael McShane, told TheShout today (Apr 22), adding that the company is performing well in the current economic climate.
The cost-cutting program will see Brown-Forman dump 250 employees out of a global workforce of 4100 people, mostly in the Americas, with a number of positions also eliminated in Europe and the Asia Pacific region, effective May 1.
“While this was a very difficult decision to make, I believe it is necessary to best position Brown-Forman for both the difficult times we are confronting today and the uncertain and challenging environment that we expect ahead of us,” said Brown-Forman CEO Paul Varga, adding that all employees affected by the redundancies will be offered severance pay, career counseling assistance and other benefits.
The redundancies and other cost-cutting measures are projected to save the company $21 million to $35million in costs over the next financial year.
Brown-Forman’s global portfolio includes Jack Daniel’s, Southern Comfort, Finlandia, Canadian Mist, Fetzer, Korbel, Gentleman Jack, el Jimador, Tequila Herradura, Sonoma-Cutrer, Chambord, Tuaca, Woodford Reserve and Bonterra.