In a significant restructuring move, the global brewing behemoth Heineken has unveiled plans to slash up to 6,000 jobs worldwide. This decision comes as the company grapples with weaker consumer demand for beer and a challenging economic landscape.
Extensive Workforce Reduction
Heineken, which owns popular brands like Amstel and Birra Moretti, confirmed that it will cut between 5,000 and 6,000 roles over the next two years. This represents approximately 7% of its total global workforce, marking one of the most substantial downsizing efforts in the beverage industry recently.
Impact on UK Operations
The company's UK division, headquartered in Edinburgh with additional sites in London, Manchester, Tadcaster, Hereford, and Ledbury, employs around 2,100 people. Additionally, its Star Pubs and Bars arm manages 2,400 venues across the country. However, Heineken has not specified how these UK operations will be affected by the job cuts.
It is understood that the reductions will involve brewery closures and consolidation efforts already underway, as well as merging smaller markets and centralising back-office functions. These measures are part of a broader strategy to drive cost savings and enhance profitability amid a difficult consumer environment.
Financial Performance and Market Challenges
Heineken reported a 1.2% decline in total sales volumes for 2025, despite stronger performance for its flagship Heineken beer brand. Total revenues fell by 4.7% year-on-year to 34.3 billion euros (£29.8 billion), while operating profits decreased by 3.2% to 3.4 billion euros (£2.97 billion).
The company attributed these setbacks to a broader decline in the European beer market, driven by increased consumer price sensitivity. Total drinks volumes in Europe dropped by 3.4%, with beer volumes specifically falling by 4.1%.
UK Market Dynamics
In contrast to the overall downturn, Heineken's UK operations saw net revenues grow by low single-digit percentages. This growth was fueled by shifts in consumer purchasing patterns, with drinkers moving towards more premium beer brands like Amstel, Heineken, Murphy's stout, and Cruzcampo.
The company's efforts to decarbonise its operations, such as installing a heat pump network at its Manchester brewery, highlight its commitment to sustainability even during this period of financial strain.
As Heineken navigates these turbulent times, the job cuts underscore the severe pressures facing the global brewing industry. The company's focus on cost-saving initiatives and premium brand promotion will be critical in weathering the ongoing market challenges.
