Molson Coors to cut 400 jobs in Americas business restructuring

CHICAGO - Molson Coors Beverage Company (NYSE:TAP, TAP.A), currently trading at attractive valuations according to InvestingPro analysis, announced Monday a corporate restructuring plan that will eliminate approximately 400 salaried positions across its Americas business by the end of December 2025. The company, which maintains a healthy P/E ratio of 9.9 and shows good overall financial health, appears undervalued based on comprehensive Fair Value analysis.

The workforce reduction represents about 9% of the company’s Americas salaried staff and includes hundreds of positions that were already vacant from earlier prioritization efforts this year, as well as employees who may accept voluntary severance packages. Despite these changes, the company maintains strong fundamentals with $11.3 billion in revenue over the last twelve months.

"We’ve made progress on our transformation journey, but given the environment, we must transform even faster," said President and Chief Executive Officer Rahul Goyal in the company statement.

The beverage maker said the restructuring aims to create a leaner, more agile organization while enhancing its ability to reinvest in priority brands and initiatives. The company plans to focus resources closer to consumers and customers as it pursues growth in both its beer portfolio and expansion into adjacent categories like premium mixers, non-alcoholic beverages, and energy drinks. Notably, the company has maintained dividend payments for 51 consecutive years and currently offers a robust 4% dividend yield. For deeper insights into Molson Coors’ financial health and growth potential, investors can access detailed analysis through InvestingPro, which offers comprehensive research reports and additional ProTips.

Molson Coors expects to incur charges between $35 million and $50 million related to the restructuring, primarily for cash severance payments and post-employment benefits in the fourth quarter of 2025. These payments are expected to be distributed over the next twelve months.

The company indicated it would share more details about its long-term strategy in the coming months, according to the press release statement.

Molson Coors’ portfolio includes core brands like Coors Light and Miller Lite, as well as premium offerings such as Blue Moon Belgian White and newer products including Vizzy Hard Seltzer and Five Trail whiskey. With an EBITDA of $2.37 billion in the last twelve months and strong cash flow generation, the company maintains a solid financial foundation for its diverse product portfolio.

In other recent news, Molson Coors has made several noteworthy announcements and changes. The company has appointed Rahul Goyal as its new CEO, effective October 1, 2025, succeeding Gavin Hattersley. This leadership transition is part of Molson Coors’ broader organizational restructuring. Jefferies has raised its price target for Molson Coors to $51.00, citing the company’s leadership changes and innovation efforts as positive developments. However, Piper Sandler has lowered its price target for Molson Coors to $52.00, pointing to persistent market headwinds and a lack of immediate catalysts for improvement.

Meanwhile, Jefferies upgraded Fevertree Drinks to a Buy rating, following its partnership with Molson Coors, which is expected to enhance Fevertree’s capabilities in the U.S. market. Additionally, Jefferies noted that the U.S. alcohol inventory-to-sales ratio remained stable in July, with a slight improvement in sales from wholesalers to retailers. These developments indicate a dynamic period for Molson Coors as it navigates leadership changes and market conditions.

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