(RTTNews) - While reporting its financial results for the third quarter on Wednesday, Molson Coors Brewing Co. (TAP, TPX.TO) announced a restructuring plan that includes about 400 to 500 job cuts.
The company also said it will change its name to Molson Coors Beverage Company to better reflect its strategic intent to expand beyond beer and into other growth adjacencies. The company will legally change its name starting in January 2020.
Molson Coors said it plans to unlock about $150 million in savings by simplifying its structure. The company will move from a corporate center and four business units to two streamlined business units - North America and Europe.
Molson Coors said it will invest significantly in Above Premium, the fastest growing area of the beer industry, with added investment in existing brands, new innovations and possibly through bolt-on acquisitions where there is a strong business case.
After launching two portfolio firsts in 2019, a canned wine and a hard coffee, Molson Coors will continue to invest more in whitespace opportunities and in growth spaces beyond the beer category.
Separately, Molson Coors will continue to modernize its brewery footprint and will also invest several hundred million dollars to modernize its brewery in Golden, Colorado.
To further drive efficiency and enable growth, Molson Coors is consolidating and reorganizing office locations. The company will close its Denver office and Chicago will be designated as the North American operational headquarters. Functional support roles currently housed in several offices around the country will now be based in Milwaukee, Wisconsin.
As a result of the restructuring, the company said it expects to reduce employment levels by about 400 to 500 employees, primarily in its existing United States, Canada and International reporting segments, as well as Corporate.
The company currently expects to incur certain cash and non-cash restructuring charges in a range of about $120 million to $180 million, that will be spread through the balance of this fiscal year as well as fiscal years 2020 and 2021. The consolidation activities are expected to be substantially completed by the end of fiscal year 2021.
The company will also consolidate the Global, MillerCoors, Canadian, and MCI leadership teams into one team to streamline decision making. Hattersley's new Leadership Team will assume their roles effective November 1.
As Molson Coors moves to a North America and Europe structure, the company said there will no longer be a President of the U.S. business.
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