Brewdog Faces Major Restructuring Amid £37m Loss and Job Cuts

Brewdog Grapples With £37m Loss, Announces Sweeping Job Cuts

In a move that’s sent ripples across the UK’s craft beer industry, Brewdog has announced major job cuts after posting a staggering £37 million loss for the previous financial year. The news marks the fifth consecutive year of pre-tax losses for the Scottish brewery, headquartered in Ellon, Aberdeenshire, with cumulative losses now reaching £148 million, according to BBC News and STV News.

Restructuring Hits Head Office and Ellon Brewery

The scale of the cuts remains undisclosed, but the impact is already being felt across several departments, including Brewdog’s head office and its flagship Ellon brewery. Chief executive James Taylor communicated the difficult decision to staff via an internal email, explaining that the company was “right-sizing” its operations in response to what he described as a “tough and fast-changing market.”

“We’ve taken time to review our structure and ensure we’re focusing our energy and investment in the right areas,” Taylor wrote. “These changes have affected a number of roles across several departments. Impacted individuals and teams have now been informed, and we’re working closely with them to manage the transition with care and support.”

For employees, the sudden announcement has brought anxiety and uncertainty. Unite the union, representing some Brewdog staff, described the job losses as a “deeply worrying sign for the company’s future.” The union pledged to support affected members and emphasized the seriousness of the situation: “After weeks of uncertainty, this is a deeply worrying sign for the company’s future. We shall be supporting all affected members to secure everything they’re entitled to.”

Leadership Changes and Bar Closures Underscore Turbulence

This restructuring comes in the wake of significant leadership changes. Co-founder Martin Dickie departed the company and the alcohol industry altogether just two months ago, citing personal reasons. Dickie, together with James Watt, launched Brewdog in 2007 from a garage in Fraserburgh, selling hand-filled bottles at local markets—a modest beginning for what would become a global brand.

James Watt, the other half of Brewdog’s founding duo, stepped down as chief executive in 2024 but retained a newly created role as “captain and co-founder.” Despite his transition, Watt continues to hold shares in the company, maintaining a stake in its future direction.

The company’s operational shakeup has extended beyond staffing. In June, Brewdog announced the closure of ten bars across the UK, citing commercial non-viability. Among the shuttered venues was the iconic Aberdeen Gallowgate bar, the first Brewdog bar opened in 2010, and another in Dundee. These closures highlight the challenges Brewdog faces in adapting to shifting consumer habits and economic headwinds.

Lost Forest Project and Environmental Ambitions Falter

Brewdog’s turbulence isn’t confined to its core brewing operations. The company recently sold the Kinrara rewilding estate in the Highlands—an £8.8 million investment made in 2020 and dubbed the “Lost Forest.” Brewdog had pledged to create the UK’s largest native woodland and peatland restoration project, financed by sales of its Lost Forest lager.

Yet critics have pointed to disappointing outcomes. Newly planted trees reportedly failed to thrive, and ambitious plans for an eco-hotel, distillery, and outdoor center were abandoned, with buildings sold off instead. The estate, located near Aviemore, has now been acquired by Oxygen Conservation, a land investment firm, marking a retreat from Brewdog’s high-profile environmental commitments.

Brand Reputation and Workplace Culture Under Scrutiny

Brewdog’s rise was marked by bold marketing campaigns and rapid global expansion. The company operates around 60 bars in the UK and has established a presence in international markets. But recent years have seen mounting criticism of its workplace culture and pay practices. In January last year, Brewdog faced backlash for dropping the real living wage for new hires, opting for the lower legal minimum wage instead.

These decisions, combined with leadership turnover and financial losses, have led to an atmosphere of uncertainty. For a brand once celebrated for its rebellious spirit and disruptive energy, the current moment feels starkly different—a test not just of business acumen, but of resilience and adaptability.

Looking Ahead: Can Brewdog Reinvent Itself?

The immediate future for Brewdog is fraught with questions. How will the company navigate the competitive pressures of the UK beer market? Can it restore confidence among its staff and supporters, many of whom were drawn to its vision of craft brewing as a force for change?

Chief executive James Taylor remains optimistic, insisting that the restructuring will help Brewdog “operate more simply, stay focused, and drive the business forward.” Yet, for employees facing redundancy and for fans watching from the sidelines, optimism alone may not be enough. The next chapter for Brewdog will depend on its ability to balance ambition with operational discipline, and to recapture the entrepreneurial spirit that defined its early years.

Brewdog’s latest round of job cuts and strategic pivots represent a critical crossroads for the company. With financial losses mounting and its public image under strain, Brewdog must now prove that its commitment to reinvention can match the boldness of its origins. The coming months will reveal whether streamlined operations and renewed focus can restore stability, or if deeper changes will be necessary to secure the future of one of the UK’s most distinctive craft brewers.