Brown Forman, the producer of Jack Daniel’s and other types of whiskey, has prepared some special offers for some of its employees. The company is about to propose early retirement to 150 employees in an attempt to reduce its expenses. Given the recent financial situation of the spirits maker, Brown Forman will select employees with experience that earn generous salaries.
Some employees will receive early retirement offers
This week, Brown Forman needs to perform a thorough assessment of its financial situation for the fourth quarter of last year and the entire 2018 fiscal year. Judging from the past results, we can notice a mild downfall. For instance, for the 2017 fiscal year, they earned $3.86 billion, as compared to $4.01 billion from last year.
As a result, the company found an interesting solution to the crisis. It is going to offer early retirement offers to 150 of its employees that earn well over six figures. If all employees take these offers, the company will lose about 10 percent of its workforce.
This is interesting to notice when it comes to a company like Brown Forman. The whiskey producer is well-known for its generosity when it comes to salaries, as well as all the other benefits it offers to its employees. Also, this would be the first major employee layoff since 2009, when the company was one of the many victims of the recession.
This layoff might be a way for Brown Forman to reduce costs
Brown Forman commented on this early retirement initiative. It turns out the main purpose of the operation is to offer a nice reward to valuable employees. However, there is a financial reason as well, since these layoffs would bring about a better management of the costs. In the end, the company also seeks to create new jobs for younger people and to give them the possibility to advance in their career.
This might be a smart move by Brown Forman, but it’s still hard to tell how it would affect the company. Most likely, early retirement would come with a lot of cost savings. However, it’s hard to make an estimate before the spirits maker knows how many people will take the offer.
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