Heineken NV will cut 5 000 to 6 000 jobs as the Dutch brewer contends with a slump in demand for alcohol.
The company said Wednesday that it will reduce headcount over the next two years in an effort to cut costs. It employs about 87 000 people worldwide, with 3 700 in the Netherlands, where Heineken is headquartered.
The majority of the job cuts will be outside of the Netherlands, Chief Executive Officer Dolf van den Brink told reporters on a call.
“We are focusing many of the initiatives to strengthen our European business,” he added.
Heineken said beer volumes fell 2.4%, slightly less than analyst estimates.
The company also forecast operating profit growth of between 2% and 6% this year, compared with 4.4% in 2025, which came in at the lower end of its guided range.
The brewer, which also makes brands such as Tecate and Amstel, is contending with a pullback in beer consumption in critical markets, including the US and Europe, as consumers moderate their alcohol consumption to improve their health and bring down rising household costs.
The headcount reduction underscores wider challenges from weaker demand, which has forced rivals such as Anheuser-Busch InBev and Carlsberg A/S to also tighten operations.
Last month, Heineken surprised investors when it said Van den Brink would step down after six years at the helm and more than 28 years at the company overall.
BLOOMBERG
