
America’s second-largest alcohol distributor is laying off more than 1,700 employees after announcing it is pulling out of business in California.
Republic National Distributing, a once-dominant company that linked famous beer and vodka brands with local bars, filed paperwork to lay off 1,756 employees.
Staffers in sales, analytics, and HR roles across California are set to get their pink slips.
The job cuts are coming as the Texas-based company plans to shutter its distribution operations in California by September 2.
It’s the latest warning sign for an industry that’s already struggling with closures and job losses as Americans increasingly cut back on alcohol.
There are reportedly three main reasons for the statewide departure: increasing debt, sky-high costs, and a loss of important contracts to competitors.
Republic National has not suggested that politics have played a role in its decision, but it is re-investing in Texas with 100 new jobs.
President and CEO Bob Hendrickson said: “This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.”
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Author: Marty Kaufmann
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