(CU)_Dutch brewing giant Heineken revealed on Wednesday (Feb 10) that it would slash around 8,000 jobs worldwide, as profits plummeted on account of closure of bars and pubs during the pandemic.
In 2020, the world’s second biggest brewer, which also owns the Tiger, Sol and Desperados brands, reported a net loss of €204 million ($247 million), in comparison to a net profit of €2.1 billion reported the year earlier.
Heineken chief executive Dolf van den Brink, noted that it was a year of “unprecedented disruption and transition” for the brewing giant, while the company said in a statement that governments’ restrictions in relation to the pandemic continue to have a “material impact” on its markets and business.
Closures of pubs, bars and restaurants on account of the pandemic severely impacted the hospitality industry around the world. This was amplified by South Africa’s ban on all alcohol sales which was in force for over a month, followed by a partial lifting of restrictions on February 2.
Van den Brink admitted that the Amsterdam-based company was particularly hit by its heavy presence in drinking-holes around the globe, with less than 30 per cent of its outlets operating in Europe, where a 40 per cent decline in beer sales were reported.
“The impact of the pandemic on our business was amplified by our on-trade (bars, cafes and restaurants) and geographic exposure,” he said.
Last October, Heineken announced that restructuring was needed in order to reduce personnel costs, although the firm did not give a specific figure for layoffs back then. According to Van den Brink, the brewing giant’s restructuring plan was aimed to make €2 billion in savings by 2023.
“The overall restructuring programme will reduce our employee base by (about) 8,000 people,” the company said in a statement, adding that the head office in Amsterdam as well as branches across the globe will be subject to the workforce reduction. The layoffs will slash nearly 10 percent of the company’s global workforce of around 85,000 people.
