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BF-A
New York Post
217 days

Jack Daniel's maker to slash 12% of its workforce as consumers' alcohol consumption dries up

1. Brown-Forman is cutting 12% of its workforce due to declining alcohol consumption. 2. Whisky sales dropped 1.2% in 2023, marking the first decline since 2002. 3. The company’s restructuring aims to save $70-$80 million annually. 4. Brown-Forman plans to sell its barrel-making operation for $30 million. 5. US health warnings about alcohol risks further impact consumer behavior.

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FAQ

Why Bearish?

Layoffs and declining sales signal ongoing challenges for Brown-Forman's stock. Similar declines in alcohol stocks occurred after health warnings.

How important is it?

The layoffs and restructuring reveal operational challenges that could affect BF-A performance. Insights into health warnings indicate a continued impact on alcohol sales.

Why Short Term?

Immediate restructuring may stabilize costs but underlying sales issues persist. Past trends show consumer behavior is slow to recover after negative news.

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