The Trickle-Down Effect of Major Liquor Industry Layoffs
Liquor industry layoffs are nothing new. In fact the ebb and flow of the liquor industry economic cycle generally resembles that of the overall economy. Long thought to be “recession-proof,” the liquor industry’s recent downturn only shows its humanity. What it does not show is a systemic and secular decline in the industry. That is, there is no evidence that we are at a tipping point for an extended decline.
Recently, the liquor industry has been rocked by significant layoffs, raising concerns about the broader implications for on- and off-premise businesses. These reductions, spanning several major companies, signal a potential reshaping of the industry. By examining historical layoff trends and current challenges, we can assess whether these liquor industry layoffs represent a cyclical resizing or a deeper transformation. Additionally, disparities between producers and distributors, alongside the rise of AI, are creating new hurdles for retailers and craft producers alike.
Major Layoff Announcements in the Liquor Industry
Over the past year, liquor industry layoffs have included:

- Brown-Forman Corporation: In January 2025, Brown-Forman announced plans to reduce its global workforce by 12%, equating to around 650 employees. This included closing its Louisville-based barrel-making facility, affecting 210 workers.
- Anheuser-Busch InBev: In July 2023, Anheuser-Busch laid off nearly 400 U.S. employees, primarily in corporate and marketing roles, following declining Bud Light sales.
- Southern Glazer’s Wine & Spirits: In October 2024, Southern Glazer’s reduced its workforce by approximately 3,000 employees. This move significantly altered the liquor distribution network, especially for smaller craft brands.
- Vintage Wine Estates: In July 2024, the company filed for Chapter 11 bankruptcy and announced layoffs of nearly 400 employees due to financial challenges.
- Artisanal Brewing Ventures (ABV): In June 2024, ABV downsized after a 7% decline in sales at retail outlets.
These liquor industry layoffs highlight a response to rising costs, shifting consumer preferences, and intensified competition.
Historical Context: Are These Layoffs Cyclical or Structural?
The liquor industry has historically experienced workforce reductions tied to economic cycles:
- 1980s Recession: Economic downturns led to decreased consumer spending, resulting in widespread layoffs.
- Early 2000s Consolidation: Mergers and acquisitions created redundancies across the industry.
- 2008 Financial Crisis: Companies downsized as affordability became a consumer priority.
While previous layoffs were often followed by recoveries, the current wave of liquor industry layoffs suggests deeper structural changes. Evolving consumer trends, digital transformation, and economic pressures are reshaping the industry’s core dynamics.
The Role of AI in Liquor Industry Layoffs
AI-powered technologies are increasingly transforming the liquor industry, streamlining operations but also reducing workforce needs. Key applications include:
- Production Automation: AI optimizes production quality and inventory management, reducing the need for large production teams.
- Supply Chain Management: Predictive analytics enhance logistics efficiency, minimizing the need for traditional planning roles.
- Marketing and Sales Optimization: AI tools tailor campaigns and replace manual sales forecasting, reducing reliance on large sales teams.
- Retail Operations: Smart inventory systems and AI-powered kiosks automate retail tasks, decreasing staffing requirements.
Estimates suggest that AI could reduce workforce needs in production by 20–30%, supply chain roles by 15–25%, and marketing by 10–15% over the next decade. While this creates opportunities for tech-focused roles, it also accelerates the trend of liquor industry layoffs.
The Decline of In-Person Sales Support
“My distributor’s salesperson used to help with logistics, sales, and merchandising—now I’m left navigating a web portal alone. It feels like the end of customer service in this industry.”
– [Retail Liquor Store Owner]
One noticeable outcome of liquor industry layoffs is the decline in personal sales support. Anecdotal evidence reveals that small retailers are experiencing minimal interaction with sales representatives, particularly from large distributors like Southern Glazer’s. Instead, retailers are increasingly directed toward electronic ordering systems, which, while efficient, lack the personal touch necessary for fostering strong business relationships.
Without in-person sales support, many retailers feel disconnected and under-supported. This shift can result in missed opportunities to educate staff, tailor product selections, and build trust—essential factors for successful operations.
Challenges for Craft and Emerging Producers

Liquor industry layoffs disproportionately affect craft and emerging producers. Large distributors, with reduced salesforces, often focus on established brands, leaving smaller producers to compete for limited attention. The disparity between the number of producers and distributors further exacerbates this challenge, making it difficult for craft distilleries to secure meaningful distribution.
Craft producers rely heavily on sales teams to establish accounts and gain visibility. However, as distributors prioritize digital ordering and automation, these smaller brands face increased barriers to entry. This not only stifles innovation but also limits the diversity of products available to consumers.
Strategies for On- and Off-Premise Retailers to Adapt
To navigate these challenges, retailers must adopt proactive strategies:
- Leverage Technology: Utilize distributor-provided digital tools to streamline ordering and track inventory trends effectively.
- Foster Direct Relationships: Build partnerships with smaller, local distributors or craft producers, who may offer more personalized support.
- Invest in Staff Training: Educate your team on emerging products and market trends to compensate for reduced sales support.
- Utilize Retail Analytics: Implement AI-driven analytics tools to gain insights into customer preferences and improve decision-making.
- Collaborate with Industry Peers: Join trade associations or networking groups to share best practices and strategies for adapting to the changing landscape.
The Takeaway on Major Liquor Industry Layoffs
The recent wave of liquor industry layoffs reflects both cyclical adjustments and deeper structural shifts. As AI continues to reshape the industry and distributors prioritize efficiency over personal service, the traditional dynamics between producers, distributors, and retailers are evolving. For on- and off-premise businesses, adapting to these changes requires leveraging technology, building stronger relationships with smaller producers, and investing in workforce training. By embracing innovation and collaboration, retailers can overcome these challenges and thrive in an increasingly digital and less personal liquor industry.