Tuesday, 02 January 2024 12:17 GMT

Heineken Unveils Global Workforce Reduction


(MENAFN) Heineken revealed on Wednesday its intention to eliminate between 5,000 and 6,000 positions worldwide as the Dutch brewing giant confronts shrinking beer volumes and difficult trading conditions.

The downsizing, which will affect about 7% of its 87,000-employee workforce, forms part of a wider initiative aimed at generating nearly €500 million ($520 million) in yearly savings.

The disclosure coincided with the release of the company’s full-year 2025 financial results, which showed a 1.2% decrease in worldwide beer volumes and a steeper 3.4% contraction across Europe.

Even with the downturn in sales quantities, the brewer recorded a 4.4% rise in operating profit over the year.

Chief Executive Officer Dolf van den Brink, who confirmed he will step down in May, characterized the workforce reductions as a necessary step to regain flexibility and support future expansion.

Chief Financial Officer Harold van den Broek indicated that the restructuring process would touch every tier of the company, placing particular emphasis on European operations.

The brewer also revised its 2026 forecast downward, projecting operating profit growth of between 2% and 6%, compared with earlier expectations.

Increasing operational expenses, unfavorable weather conditions, and evolving consumer tastes were identified as major pressures weighing on the sector.

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