Categories: Business

Heineken to cut up to 6,000 jobs as beer demand falters

By Emma Rumney LONDON, Feb 11 (Reuters) – Heineken said it would cut up to 6,000 jobs from its global workforce and set lower expectations on Wednesday for 2026 profit growth than last year, as the Dutch brewer and its peers face weak demand. The job cuts amount to almost 7% of the 87,000-strong, global workforce at the world's No.2 brewer by market value, which is searching for a new CEO following the surprise resignation of Dolf van den Brink in January. The maker of Tiger and Amstel alongside its namesake lager has promised to deliver higher growth with fewer resources as it looks to assuage dissatisfied investors who say it has fallen behind on efficiency.  At the same time, sales across the sector are faltering amid strained consumer finances and more recent bad weather. Rival Carlsberg has said it would cut jobs, while other beer and spirit makers are also cutting costs, selling assets and slowing production after years of slow sales. Heineken's shares were up 3.5% at 1147 GMT, having risen around 7% since the end of 2025.  PRODUCTIVITY DRIVE Heineken said its productivity drive will unlock savings and reduce its global head count by 5,000 to 6,000 positions over the next two years.  "We really do this to strengthen our operations and to be able to invest in growth," finance chief Harold van den Broek said on a media call announcing the company's annual results.  Some of the cuts would be focused on Europe or non-priority markets offering fewer growth prospects, he said, and some would also result from previously announced initiatives targeting Heineken's supply network, head office and regional business units.   PROFIT OUTLOOK LOWER Along with weak demand, alcohol makers also face long-term threats like rising health warnings, competition from alternatives, and disruptions like weight-loss drugs.  Heineken expects slower profit growth for 2026 of between 2% and 6%, against the 4% to 8% growth it guided for in 2025. Carlsberg also predicted 2026 profit growth in the same range last week.  Heineken reported forecast-beating annual organic operating profit, which grew 4.4% in 2025 versus analyst expectations for 4%.  Javier Gonzalez Lastra, analyst at Berenberg, welcomed what he said was Heineken's conservative approach to guidance, alongside the company's efficiency efforts and messaging that, despite an upcoming change of CEO, the company was committed to its existing strategy. Outgoing-CEO van den Brink, who steps down in May, said there was no update on the brewer's search for a successor.  (Reporting by Emma Rumney; Editing by Clarence Fernandez, Thomas Derpinghaus, Bernadette Baum and Elaine Hardcastle)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

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