Global beer giant announces massive layoffs – what caused it?
12 February 12:36
Dutch brewery Heineken has announced that it will cut up to 6,000 jobs over the next two years. This is almost 7% of its total workforce, which numbers around 87,000 employees worldwide. The reason for this decision was a decline in demand for beer amid falling alcohol consumption and pressure on family budgets. This was reported by The Guardian, according to "Komersant Ukrainian".
The company also lowered its profit growth forecast for 2026, citing difficult market conditions.
The cuts will affect production and office workers
Heineken, which produces the Heineken, Amstel, and Tiger brands, said the cuts would affect both production staff and administrative positions. Some of the jobs will be eliminated in Europe, as well as in other markets.
The company’s CFO, Harold van den Broek, said the steps are necessary to improve efficiency and enable investment in future growth.
According to company representatives, the optimization is aimed at “accelerating productivity on a large scale and achieving significant cost savings.”
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Lower profit forecast and falling sales
Heineken forecasts profit growth of 2-6% in 2026, down from its previous forecast of 4-8%.
Last year, total beer sales fell by 1.2% compared to the previous year. The decline was particularly noticeable in Europe and North America, where the market is facing a decline in alcohol consumption.
Why consumers are drinking less beer
Analysts note several reasons for the decline in demand:
- rising cost of living and reduced household spending;
- increased attention to healthy lifestyles;
- a decrease in alcohol consumption due to diets and the use of weight loss products.
The company emphasizes that changing consumer habits have become a long-term challenge for the industry.
Investors reacted positively
Despite the decline, Heineken’s shares on the Amsterdam stock exchange rose by almost 4% and reached their highest level in six months.
Investors responded positively to plans to reduce costs and increase efficiency.
Current CEO Dolph van den Brink announced his resignation in January after six years in the role. He will leave in May, and the company is currently looking for a new leader.
Russ Mould, investment director at brokerage firm AJ Bell, noted that the company’s future CEO will take office after difficult decisions have been made to optimize the business.
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