This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Constellation to axe 5% of workforce
Constellation has announced plans to axe 5% of its global workforce as deterioration in the UK and Australian markets forced the world’s largest wine company to reduce its earnings forecast for the current financial year.Â
The company said that “an increasingly challenging global market” was behind the decision to slash 10 cents off is earnings per share forecast, with the UK market singled out as a particular cause of concern.
“We experienced weaker than expected demand in our European and Australian businesses during the Christmas and New Year holiday," said Rob Sands, president and chief executive officer of Constellation Brands.
"The most significant impact was felt in the UK, where the economy weakened during this critical selling season, retail competition intensified, and we made the decision to forego participation in significant price discounting offered by multiple grocers.
Mr Sands added that Constellation, which counts leading brands such as Hardys and Robert Mondavi among its stable, will have to shed jobs as part of a global restructuring of the business.
"While we have already begun to take actions in the UK to align the cost structure with the realities of the marketplace, we believe it is appropriate to implement additional cost reductions not only in the UK, but across our global businesses,” he said.
“Although not finalised, these initiatives are currently expected to result in the elimination of approximately five percent of our global workforce."
Constellation also announced the sale of its value spirits business to Sazerac Company, Inc. for US$334 million, subject to post-closing adjustments, with US$210m of the proceeds being used to reduce debts in the 2010 financial year.
Alan Lodge 25.03.2009Â