Heineken Announces Major Global Restructuring with Up to 6,000 Job Cuts
Heineken, the world's second-largest brewer by market value, has revealed plans to cut between 5,000 and 6,000 jobs globally over the next two years. This significant reduction represents nearly 7% of its total workforce of 87,000 employees. The announcement comes as the company faces mounting challenges from declining beer sales and shifting consumer habits.
Revised Profit Forecasts and Strategic Shifts
In addition to the workforce reductions, Heineken issued a lower estimate for profit growth in 2026 compared to previous projections. The Dutch brewer now anticipates slower profit growth of 2% to 6% this year, down from the 4% to 8% range predicted for 2025. This adjustment reflects the broader struggles within the beer industry, where demand has been weakened by multiple factors.
Heineken's finance chief, Harold van den Broek, emphasized that the job cuts are part of a strategic effort to strengthen operations and reinvest in growth opportunities. He noted that some reductions will occur in Europe and other non-priority markets with limited growth prospects, while others will stem from previously announced measures targeting the company's supply network, head office, and regional business divisions.
Industry-Wide Challenges Impacting Beer Sales
The global beer market has been grappling with a perfect storm of issues that have dampened sales. Stretched consumer finances due to economic pressures, geopolitical turmoil, and adverse weather conditions have all contributed to weaker demand. Furthermore, changing lifestyles are playing a significant role, with health concerns leading some consumers to reduce alcohol consumption.
The rising popularity of weight loss drugs such as Wegovy and Mounjaro has also influenced drinking habits, as individuals adopting these treatments often cut back on beer and other alcoholic beverages. These trends have forced brewers like Heineken to reassess their strategies and operational structures.
Leadership Changes and Financial Performance
Heineken is currently in the process of searching for a new chief executive following the unexpected resignation of Dolf van den Brink in January. This leadership transition adds another layer of complexity to the company's ongoing restructuring efforts.
Despite the challenges, Heineken reported a better-than-expected rise of 4.4% in organic operating profits last year. However, the downward revision of future profit growth forecasts underscores the persistent headwinds facing the industry. The brewer, known for brands like Heineken, Tiger, and Amstel, is taking proactive steps to navigate these turbulent times and position itself for sustainable growth in the years ahead.
