Heineken To Cut 8,000 Jobs As Pandemic Hit Sales
Dutch brewing giant Heineken stated on Wednesday, February 10 that it would cut around 8,000 jobs worldwide as the coronavirus pandemic has negatively affected the business.
The world’s number two brewer after Belgian-Brazilian AB InBev will reduce roughly 10 percent of its workforce as Covid restrictions keep bars and restaurants closed.
Heineken reported a net loss of 204 million euros ($247 million) for 2020, compared with a net profit of 2.1 billion euros a year earlier, while sales dropped 17 percent to 23 billion euros.
Heineken CEO Dolf van den Brink, who took control last April, announced that it had been “a year of unprecedented disruption and transition” for the organization.
The CEO said the layoffs were part of efforts to re-fix Heineken, whose brands include Strongbow and Amstel, targeting two billion euros of savings by 2023.
“The Covid-19 pandemic and governments’ measures continue to have a material impact on our markets and business,” Heineken stated in a statement.
The brewer’s beer sales dropped 8.1 percent for the year, although its main Heineken brand only dropped 0.4 percent, “significantly outperforming the total market”, it said.
It further added that the brand grew double-digits in 25 markets including Brazil, China and Britain.
The zero-alcohol Heineken 0.0 was an uncommon bright spot, with single-digit growth globally.
