Business

Heineken to cut 8,000 jobs as virus takes fizz out of sales

World’s No. 2 brewer sees 109% fall in profits last year

Updated 5 years ago · Published on 10 Feb 2021 8:00PM

Heineken to cut 8,000 jobs as virus takes fizz out of sales
Founded in the 19th century in Amsterdam, Heineken sells more than 300 brands, including its namesake plus others. – Pixabay pic, February 10, 2021

THE HAGUE – Dutch brewing giant Heineken today said it will cut around 8,000 jobs worldwide as the coronavirus pandemic kept much of the hospitality sector closed.

Heineken, the world’s No. 2 brewer, said it recorded a net loss of €204 million (RM999 million) last year, a 109% fall in profits from the year before.

Heineken chief executive officer Dolf van den Brink said it has been “a year of unprecedented disruption and transition” for the company.

“The Covid-19 pandemic and governments’ measures continue to have a material impact on our markets and business.”

The company said sales fall by 17% to €23 billion, with bars and cafes closed in many countries.

It added that less than 30% of outlets are operating in Europe, in particular at the end of January.

Heineken had in October announced that restructuring is needed to reduce personnel costs, but gave no figure for lay-offs at the time.

“The overall restructuring programme will reduce our employee base by 8,000 people,” today’s statement said.

It said this included cutting jobs at the head office in Amsterdam, while other lay-offs will depend on local circumstances.

Founded in the 19th century in Amsterdam, Heineken sells more than 300 brands, including its namesake plus others, such as Strongbow and Amstel. It employs 85,000 people globally. – AFP, February 10, 2021

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