Brewery firm Heineken is cutting 9 000 positions due to the COVID-19 pandemic
A top brewer, Heineken has retrenched about 9, 000 of its workers to stay afloat. It took this decision this week after incurring a considerable loss due to COVID-19.
9,000 Heineken staffs lose their jobs
The top brewery firm has decided to cut about 9,000 jobs for it to avoid going under. This action of Heineken will save them about €3 billion in two years. This decision was revealed by CEO Dolf Van don Brink, who said he has tried to put the country in the best position as the second-best brewery in the world.
However, he said the coronavirus pandemic had impacted negatively generally on the leisure and entertainment industry. Van den Berk said that the firm would provide cutouts staff by almost 12 percent to increase productivity and free margins back to position ratios.
This cut was because of the loss incurred by the brewery firm in 2020. The firm with products like Moretti, Tiger, and Amstel reported a loss of about €211 for the year, which is down from making over €2 billion profit in 2019. The loss comes as various hospitality places like bars, clubs, and resorts were closed because of COVID-19. Also, revenues dwindled to about 16 to €22.9 billion.
The firm will save money due to this decision - CEO
Heineken is one of the top brewers globally to announce job slash since COVID-19 started. However, its biggest competitor Anheuser-Busch has said it would suspend 600 casual workers in its plant in South Africa. '' COVID-19 has impacted our business operations as can be seen in the closing of bars, restaurants, and ports.
The CEO said that the Heineken firm projects that revenues, profits will continue to decline until more effective vaccines are developed. He said the decision to lay off workers is to make the company stronger and avoid liquidation. Their new products, seltzer, and pure Piraña have done well in the market.