Heineken will cut up to 6,000 jobs globally as the brewing giant battles weak demand, rising costs and slowing profit growth.
The world’s second-largest brewer by market value confirmed the move on Wednesday, saying it will reduce its workforce by roughly seven per cent over the next two years. The cuts form part of a major productivity drive aimed at delivering “higher growth with fewer resources”.
The announcement comes just weeks after the surprise resignation of Chief Executive Officer Dolf van den Brink in January, leaving the Dutch brewer searching for new leadership at a critical time.
Slower Profit Outlook for 2026
Heineken also lowered its profit growth forecast for 2026. The company now expects operating profit growth of between 2 and 6 per cent — down from the 4 to 8 per cent range it previously projected.
Despite reporting a better-than-expected 4.4 per cent rise in annual organic operating profit last year, the brewer warned that strained consumer finances, geopolitical tensions and even bad weather are weighing on beer sales.
Long-term concerns over alcohol consumption and health are also dampening demand in key markets.
Where Will the Job Cuts Hit?
Heineken said the job cuts will focus on non-priority markets with fewer growth prospects. Additional reductions are expected within its supply network, head office and regional units.
Harold van den Broek, the company’s finance chief, said the restructuring is designed to strengthen operations and free up capital for future growth.
However, concerns are mounting in Nigeria, where Heineken operates through Nigerian Breweries Plc.
Nigeria Operations Under Pressure
Heineken Nigeria has faced severe financial strain. Nigerian Breweries reported a 79 per cent surge in losses to N85.2 billion in the first half of 2024, driven by naira devaluation, inflation and foreign exchange volatility.
The brewer recorded a staggering N106 billion loss in 2023 — the largest in its 77-year history.
In response, the company shut two plants, restructured operations and raised prices multiple times. Yet consumer demand remains weak amid Nigeria’s cost-of-living crisis.
Outgoing CEO van den Brink, who steps down in May, said there is no update yet on the search for his successor.
As Heineken embarks on sweeping job cuts and tightens operations, investors will be watching closely to see whether the brewer can steady itself in an increasingly challenging global market.
