Molson Coors Reorganizes to Accelerate Growth
Molson Coors redefines its identity with a leaner structure and focus on growth categories. Learn how this beverage giant is navigating change and driving innovation.
Molson Coors Beverage Company, one of the largest beverage producers in the world, is best known for beer brands such as Coors Light, Miller Lite, Molson Canadian, and Blue Moon. In recent years, Molson Coors has expanded beyond traditional beer into other beverage categories, including premium mixers, nonalcoholic drinks, flavored beverages, and energy drinks, reflecting changing consumer preferences and increasing competition in the global beverage industry. In late 2025, the company announced a major reorganization of its Americas business as part of a broader effort to support long term growth.
Market Pressures
Slower consumer spending, shifting drinking habits, and volatility related to tariffs and costs have placed pressure on sales and profits. Molson Coors data showed declines in both brand volume and net sales within the Americas region.
These external pressures created a need for the organization to move faster and operate more efficiently. Rather than making small, incremental adjustments, leadership determined that a larger structural change was necessary to better position the company for future growth. In other words, Molson Coors concluded that simplifying its organizational structure, reducing overhead, and reallocating people and resources toward priority brands and growth categories would be more effective than maintaining its existing setup while sales continued to slow.
Workforce Reduction and Organizational Structure
As part of the restructuring, Molson Coors announced plans to eliminate approximately 400 salaried positions across its Americas business, about 9 percent of the company’s salaried workforce in the region. The reductions included a mix of filled roles, unfilled positions, and employees who chose voluntary severance packages.
One of the primary goals of the reorganization is to streamline the company’s organizational structure. By reducing layers, clarifying roles, and reallocating resources, Molson Coors aims to move decision making closer to customers and consumers. A leaner structure can improve coordination across teams and allow the organization to respond more quickly to changes in the marketplace.
The restructuring also supports a strategic realignment of resources. Molson Coors plans to reinvest in key areas, including its core beer brands and growth categories such as premium mixers, nonalcoholic beverages, and energy drinks. This shift reflects a move away from a beer-only identity toward a broader total beverage company model.
The timing of the reorganization closely followed the appointment of Rahul Goyal as president and chief executive officer in October 2025. Goyal, who has held leadership roles in strategy, finance, and technology at Molson Coors, described the changes as part of an accelerated transformation journey. His public statements emphasized urgency, bold decision making, and a clear focus on returning the company to growth.
What’s Next?
Molson Coors expects to incur one-time costs ranging from $35 million to $50 million related to the restructuring. These expenses are primarily associated with cash severance payments and post-employment benefits. Although these costs are significant in the short term, the company views them as an investment in long term efficiency and growth. Reducing fixed labor costs and reallocating resources can improve financial flexibility and support future innovation.
In the Classroom
This article can be used to discuss organizational structure (Chapter 7: Organization, Teamwork,
and Communication).
Discussion Questions
- What external market conditions contributed to Molson Coors’ decision to reorganize its Americas business?
- In what ways does the restructuring support a shift in Molson Coors’ strategic realignment of resources?
- Based on the information provided, is Molson Coors moving toward a flatter or a taller organizational structure, and what specific evidence supports your conclusion?
This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.
Heather Willard, "Molson Coors to Cut 9 Percent of Workforce in the Americas Amid Slowing Sales," The Hill, October 21, 2025, https://thehill.com/business/5565068-molson-coors-beer-job-cuts/
Matthew Sellers, "Molson Coors Announces Layoffs with Major Restructuring for Americas," HR Reporter Canadian, October 20, 2025, https://www.hrreporter.com/focus-areas/leadership-succession-planning/molson-coors-announces-layoffs-with-major-restructuring-for-americas/393609
"Molson Coors to Cut 400 Salaried Roles in Restructuring," Prepared Foods, October 24, 2025, https://www.preparedfoods.com/articles/131014-molson-coors-to-cut-400-salaried-roles-in-restructuring
Sophia Compton, "Molson Coors to Cut Hundreds of Jobs in Restructuring Plan," Fox Business, October 22, 2025, https://www.foxbusiness.com/markets/molson-coors-cut-hundreds-jobs-restructuring-plan
O.C. Ferrell is the James T. Pursell Sr. Eminent Scholar in Ethics and Director of the Center for Ethical Organizational Cultures in the Raymond J. Harbert College of Business, Auburn University. He was formerly Distinguished Professor of Leadership and Business Ethics at Belmont University and University Distinguished Professor at the University of New Mexico. He has also been on the faculties of the University of Wyoming, Colorado State University, University of Memphis, Texas A&M University, Illinois State University, and Southern Illinois University. He received his Ph.D. in marketing from Louisiana State University.
