HOLLAND’s famous beer brand Heineken has announced it is to cut 8,000 jobs worldwide after a year of heavy losses due to the pandemic.

The move has been prompted by a significant financial downturn during 2020 which has seen the year close with losses in excess of €204 million.

In 2019, the world’s sixth largest beer manufacturer recorded total profits of €1,358 million, however in 2020, it registered a reduction by almost 18% to just €1,154 million.

This has been greatly affected by a downturn in export figures, notably Africa and the Middle East (-9.5%) and America (-14.9%)

In Spain, the brand experienced a massive drop in consumption by almost 40%, leaving total losses in the double digits thanks to the closure of many hospitality outlets.

These figures have left the manufacturer with no choice but to carry out a ‘global adjustment’ of its workforce, as revealed in a statement by Heikenen N.V.

An initial figure of 8,000 jobs are on the line worldwide, representing approximately 9% of its total payroll.

Heineken currently employs 1,590 workers in Spain, and Spanish union representatives have been warned that the job culls will effect them too.

The brand has ensured that any job losses will be carried out with the maximum notice period, with unions and staff being notified well in advance using a ‘good climate of dialogue.’

“We face this new stage with the seriousness that it demands and we have always demonstrated, seeking the least social impact and with the firm commitment to maintain a positive and constructive dialogue that allows reaching a beneficial agreement for all,” said the company in a statement.

The financial impact of the job cuts is estimated to save the company a total of €350 million in an effort to direct the company to its goal set at the end of 2020 of achieving 2 billion in savings by 2023.

The first lay-offs will take place at the companies headquarters in Amsterdam, with 20% of the workers expected to be dismissed by the end of first quarter 2021.

Unions in Spain have already been issued a statement of intent to ‘initiate a collective dismissal procedure’ however total job cuts in the country have yet to be established.

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