Heineken to Slash Up to 6,000 Jobs in Productivity Push
Heineken plans to eliminate about 6,000 jobs – roughly 7% of its workforce – over the next two years as it seeks to boost productivity through AI, outgoing CEO Dolf van den Brink told CNBC's "Squawk Box Europe." The world's second largest brewer reported sales
Heineken plans to eliminate about 6,000 jobs – roughly 7% of its workforce – over the next two years as it seeks to boost productivity through AI, outgoing CEO Dolf van den Brink told CNBC's "Squawk Box Europe."
The world's second largest brewer reported sales eased 4.7% to $34.26 billion (about $40701 billion) and net profit of 952 million euros (about $1,131,083,285).
Total volume declined 1.2%, with consolidated volume down 2.1%, and licensed volume up 17.8%. Heineken brand volume grew 2.7%, global brands volume grew 1.9%.
- Net revenue grew 1.6%, net revenue per hectolitre up 3.8%.
- Over 60% of HEINEKEN's markets, including over 80% of HEINEKEN's priority growth markets gaining or holding share.
- Marketing and selling expenses expanded to 9.9% of net revenue.
Heineken said it is projecting opeerating prfit growth rising 2% to 6% this year.
Van den Brink said “Productivity has been a top priority in our evergreen strategy... we committed to 400 to 500 million euros ($476 million to $600 million) of savings on an annual basis, and this is a first operationalization of that debt commitment.”
The job reductions will help the brewer to invest in growth and in its premium brands, he said.