Heineken group said it expects to slash between 5,000 to 6,000 roles over the next two years which represents almost 7% of its global workforce of 87,000 people
Lager giant, Heineken has announced plans to slash 6,000 jobs as it faces “challenging market conditions.” The move is being blamed on a slump in sales.
Over the next two years. 5,000 to 6,000 jobs are expected to be cut. The number represents almost 7% of its global workforce of 87,000 people, according to Reuters. Some of the cuts would reportedly be “focused on Europe or non-priority markets offering fewer growth prospects”.
“We really do this to strengthen our operations and to be able to invest in growth,” finance chief Harold van den Broek said on a media call announcing the company’s annual results this morning.
In December, Heineken UK has announced plans to reduce the strength of its Foster’s lager in order to capitalise on duty savings for weaker beers. The brewing company stated that lowering the lager’s strength from 3.7% to 3.4% would enable customers to “benefit from more competitive pricing as inflationary pressures continue to affect the wider market”.
It further explained: “This follows the introduction of differential duty rates by the UK government, which encourage brewers to innovate at lower ABV ( alcohol by volume) rates in support of customers wanting to moderate their alcohol consumption.”
The adjustment would also assist pubs and retailers with a “competitively priced classic lager”, it said. Foster’s ABV was previously reduced from 4% to 3.7% in January 2023.
At the time, Heineken UK commented: “The decision to adjust the ABV of Foster’s reflects our commitment to helping consumers make responsible choices, while supporting pubs and retailers with a competitively priced classic lager alongside a portfolio of brands across the price and ABV spectrum.
“Our master brewers have spent many months refining the recipe to ensure the taste remains unmistakably Foster’s – crisp, balanced, and refreshing.”
According to NIQ data, off-trade sales of Foster’s declined by 13.7% to £252.8 million in the year leading up to April.
Since the introduction of new duty savings on beers with an ABV of 3.4% or below in August 2023, several products have been reformulated, including Carlsberg Pilsner, Coors Light and Grolsch.
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