Consumer and market challenges are forcing Brown Forman Corp., the parent company to the iconic Jack Daniels, to make significant changes to its global operations.

In a report from ABC News, “Spirits giant Brown-Forman Corp. is reducing its global workforce by about 12% and closing its hometown barrel-making plant in Louisville. The cost-cutting moves come as American whiskey producers face stiff challenges from changing consumer trends and renewed tariff threats.”

These changes are expected to add significant cost savings for Brown-Forman Corp. – between $70 to $80 million – which are expected to be reinvested into the company.

“The company's cooperage, where barrels are made to store and age its spirits, will close by April 25, affecting about 210 hourly and salaried employees, it said. The closure is part of the overall 12% reduction in the company's 5,400-employee global workforce. Brown-Forman said it will source barrels from an external supplier and expects to receive more than $30 million from selling cooperage assets. Laid-off workers will receive severance, outplacement services and other benefits, the company said.”