Heinken to slash 6,000 jobs as health-conscious drinkers flip their backs on booze

Heineken is cutting up to 6,000 jobs as younger drinks in particular turn their back on booze.

In a brutal update, the Dutch beer giant said it was shedding around 7 per cent of its 87,000-strong global workforce.

The firm, whose beers include Amstel, Birra Moretti and Tiger as well as Heineken, also warned of weaker profit growth this year.

It came just a month after Heineken, the world’s second largest brewer by market value, announced the abrupt resignation of chief executive Dolf van den Brink.

Staff at the Heineken brewery in Manchester

That has left it hunting for a new boss as tough global economic conditions combine with subdued demand for beer among health-conscious drinkers to hit sales.

The industry is also feeling the impact of weight-loss drugs, which have hit demand for alcohol.

Rival Carlsberg is cutting jobs while other beer and spirits makers are desperately searching for cost-savings while also selling assets and slowing production after years of slow sales.

Former Tesco boss Sir Dave Lewis – known as ‘Drastic Dave’ for his cost-cutting zeal – is now tasked with turnaround around Diageo having taken over at the Guinness, Smirnoff and Johnnie Walker maker at the start of the year.

The job cuts outlined by Heineken underline the scale of the challenge facing the industry.

The firm plans to reduce its global headcount by 5,000 to 6,000 over the next two years, with many of the cuts coming in Europe as breweries are closed and areas of the business are merged.

‘We really do this to strengthen our operations and to be able to invest in growth,’ said finance chief Harold van den Broek.

‘It really touches all levels in the organisation.’

He said he expected artificial intelligence (AI) to play a role.

Van den Brink, who steps down in May, said finding his successor was a ‘top priority’ for the board, adding that he expects demand for alcohol to rebound.

‘We remain prudent in the short-term, and we remain confident in the mid- to long-term that the category will return to growth,’ he told Bloomberg TV.