Nearly five years after it opened, Diageo will cease the majority of production later this spring at what was its first Guinness production brewery in the U.S. since 1954. Almost 100 employees at the Relay, Maryland-based facility are expected to lose their jobs on June 9, according to a Work Adjustment and Retraining Notification (WARN) notice filed on Friday. The news was first reported by the Baltimore Business Journal.
The WARN filing included 108 job terminations. Diageo confirmed that around 97 manufacturing roles to be cut. However, the company said staff at its hospitality operations at the Guinness Open Gate Brewery taproom and restaurant are excluded from the layoff. In total, the facility employs nearly 200 workers.
“After careful consideration and analysis of our supply footprint, we have made the difficult decision to permanently close our manufacturing facility in Relay, Maryland,” the company wrote in a statement to media outlets. “We do not take these decisions lightly and recognize the impact on our employees. For those affected we are providing support in the form of severance packages, outplacement assistance, and employee assistance resources, as well as information on open roles across our organization.”
The company said the move was made “to ensure long-term sustainable growth for Diageo” and “optimizing our existing operations across North America to meet evolving consumer preferences.”
The Maryland brewery opened in August 2018, which the company called a $90 million investment. The brewery, housed in the former Calvert Distillery, functions as research and development hub for Guinness, and produces the brand’s Baltimore Blonde for the region. Production of that beer will continue through June, the Business Journal reported. Innovation brewing will continue on-site in the 10-barrel brewhouse at the brewery’s visitor center.
“We have been part of the Baltimore community for many years and will continue to be an active member through our work at the Guinness Open Gate Brewery, contributing to local tourism and the economy, and supporting local charitable organization,” the company added in its statement.
News of the closure comes as Diageo is on the verge of opening a Guinness Open Gate Brewery in Chicago this summer.
Editor’s Note: This story has been updated with additional information provided by Diageo clarifying news about the closure of the production facility and the continued operations of the Guinness Open Gate Brewery.