Another Kentucky bourbon maker announces layoffs as whiskey slump takes toll

Another Kentucky distillery has announced layoffs as the ongoing slump in demand for bourbon and whiskey continues to take a toll on jobs.

Whiskey House of Kentucky in Elizabethtown laid off about 30% of its workforce on June 2, CEO David Mandell said, and 22 workers were laid off with a right to recall.

“We were among the last contract manufacturers to make workforce adjustments, and we fully expect to be among the first to bring employees back as demand returns,” Mandell said in a statement.

He said laid off employees will receive severance packages, continuation of benefits and assistance with job placement.

“As an industry, we are navigating a cyclical slowdown, and our responsibility is to make thoughtful decisions that protect the long-term health of our company, our customers, and our employees,” Mandell said. “These decisions are difficult because they affect people we care deeply about. That’s why we’ve worked hard to support those impacted with meaningful severance, continued benefits, and career transition assistance.”

Whiskey House opened in July 2024 in Elizabethtown as a state-of-the-art custom distillery that produces bourbon and whiskey for various clients. It was founded in 2021 by Mandell, John Hargrove and Daniel Linde, who previously built Bardstown Bourbon Company before leaving that company.

“While current market conditions remain challenging, we are encouraged by the momentum we are seeing in customer demand, the progress of our international expansion, and the long-term prospects for the whiskey industry,” Mandell said. “By taking these actions now, we are ensuring that Whiskey House remains financially strong, operationally ready, and positioned to lead when growth returns.”

Whiskey House is remaining open and is currently operating at about 60% of its capacity, Mandell said.

Bourbon industry job cuts

Several other Kentucky distilleries, including Bardstown Bourbon Co., have laid off workers in the last year and a half as the spirits industry has suffered from declining domestic demand. Bourbon also has been impacted by President Trump’s trade war: Canada has largely been boycotting American spirits, including bourbon, since March 2025, and many overseas markets have been spooked by fluctuating tariffs.

Last year American whiskey-making hit its lowest-level since 2019 as Kentucky distillers are sitting on a glut of more than 16.1 million barrels aging in warehouses.

Brown-Forman laid off 12% of its global workforce in January 2025, about 650 jobs, including the permanent closure of its historic Louisville cooperage.

In February 2025, Campari Group, parent of Wild Turkey Distillery in Lawrenceburg and Wilderness Trail Distillery in Danville, announced plans to cut 10% of its global workforce, about 500 jobs.

In August 2025, Diageo, parent of Bulleit Bourbon, said it planned to cut an unspecified number of jobs to save $625 million over the next three years. Distilling was paused for several months at its plant in Lebanon, and a bottling facility in Shively outside Louisville was permanently closed.

In October, Kentucky barrel maker Independent Stave cut 110 jobs at its Lebanon plant.

In December, Jim Beam said the homeplace distillery in Clermont would shut down for a year, although distilling would continue at other plants and no layoffs were planned.

Earlier this year, Green River Distilling in Owensboro, which is owned by the same parent company as Bardstown Bourbon Co., also has laid off its head distiller and other workers.

And in April, MGP Ingredients shut down two Kentucky distilleries — Limestone Branch and Lux Row — for at least 12 months.

Janet Patton

Lexington Herald-Leader

859-379-5233

Janet Patton covers restaurants, bars, food and bourbon for the Herald-Leader. She is an award-winning business reporter who also has covered agriculture, gambling, horses and hemp. Support my work with a digital subscription