Heineken: 8,000 workers set to lose jobs after the beer maker announces huge losses

Heineken is a beer known around the world, but despite being sold globally, its manufacturer, which is a Dutch brewing company, Heineken N.V., was forced to remove 100 jobs in the U.K. This move will result in job loss of its 8,000 employees worldwide.

CEO explains why Heineken is cutting jobs

In his interview with Bloomberg, Heineken NV’s chief executive officer, Dolf van den Brink, revealed that the company was also negatively affected by the coronavirus pandemic. It hit their sales, and as the entire beer market has been down as well, they have lost around £204 million or $247 million, which is a 109% fall in profits compared to the previous year (2019).

The 8,000 workers who may go jobless soon is equivalent to 10% of the company’s total workforce. It was said that the job cuts will allow Heineken to save up to £2 billion or $2.4 billion until 2023. This plan has been proposed to save and allow the firm to continue the business.

The plunged in sales was obviously due to the closure of bars and pubs around the world as people are ordered to stay home. Although Heineken ranks as the second-largest brewer worldwide, it proved that even big corporations could be brought down by the pandemic too.

“It had been a year of unprecedented disruption and transition for the company,” CEO Van den Brink said. "The Covid-19 pandemic and governments' measures continue to have a material impact on our markets and business."

Heineken’s plan to offset its losses and lessen job cuts

The company stated that Heineken needs restructuring to avoid more layoffs. It is also hoping to restore its income at the pre-pandemic levels by redesigning its business system and reducing the number of products being sold. This plan will also help decrease the company’s spending.

“In a year of unprecedented disruption and transition, our teams rose to the occasion and quickly adapted while not losing sight of the need to continue investing for the future,” the Daily Mail quoted Van den Brink as saying in another report. “We took diligent cost mitigation actions balanced with continued investment behind our growth platforms.”