Heineken NV plans to cut about 8,000 jobs, the Dutch group said on Wednesday, seeking to restore operating margins to pre-pandemic levels after a sharp decline in profit because of coronavirus restrictions.
The world’s second-largest brewer, which makes Europe’s top selling lager Heineken as well as Tiger and Sol, said it would make 2 billion euros ($2.42 billion) of savings over the three years to 2023 under the “EverGreen” plan of Chief Executive Dolf van den Brink.
Heineken said the savings would be achieved by redesigning its organisation, reducing the complexity and number of its products and identifying its least effective spending.
The review of its operations would result in about 8,000 job losses – equating to 9% of its workforce at the end of 2019 – and a related 420 million euro charge. Personnel expenses would be cut by about 350 million euros, it added.
The company said it wants superior top-line growth and would push its premium brands, such as Heineken, and zero-alcohol lager even more. It also aims to become the best digitally connected brewer to serve consumers who are increasingly looking to buy beer online.
Carlsberg, the world’s third-largest brewer, last week said it was banking on most COVID-19 restrictions being lifted in the coming months, sercing to buoy earnings in the peak summer season…..read more
Source: Reuters
