The news: Heineken will cut up to 6,000 jobs, or about 7% of its workforce, over the next two years to improve operations amid slumping beer demand.
By the numbers:
- Consolidated beer volume fell 2.1% in 2025 as growth in India, Ethiopia, and Vietnam was more than offset by declines in Brazil, the US, Cambodia, and Poland.
- Net revenues rose 1.6% last year to €28.9 billion ($34.3 billion), and operating profit rose 4.4%. On a GAAP-equivalent basis, net revenues fell 3.6%, and operating profit was down 3.2%.
- In Q4 2025, total volume fell 1.7% and net revenues climbed 2.4%.
The Dutch brewer said it would use savings from the closure of breweries and centralization of back-office operations to invest in growing its premium brands. CEO Dolf van den Brink said the streamlining “partly” reflected expected efficiencies from AI. “Digitalization in general and AI specifically will be an important part of ongoing productivity savings,” he told CNBC.
Amazon, Pinterest, and other companies have also cited expected efficiencies from AI in layoff announcements this year.
Implications for brands: Heineken is adjusting its cost base as growth in developed markets slows. Beer sales have significantly cooled in the US and Europe in the wake of rising costs and a broad consumer shift to more health-conscious alternatives. The no- and low-alcohol beer market has surged in recent years, reflecting longer-term changes in drinking behavior.
The broader US labor market shows signs of stabilization. Nonfarm payrolls rose 130,000 in January, above expectations, while the unemployment rate edged down to 4.3% from 4.4% the prior month, per the Bureau of Labor Statistics. That lends support to the idea that softness in beer is less about deteriorating economics and more about evolving consumer tastes.
For other brands and retailers, the takeaway goes beyond cost-cutting. Heineken’s CEO acknowledged the company was late in scaling its business services organization, a reminder that firms in mature markets and categories must keep upgrading operational efficiency. Brands that don’t may face more abrupt restructuring when growth slows.
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