Heineken, the world’s second-largest brewer, is planning to cut up to 6,000 jobs over the next two years, representing approximately 7% of its global workforce of 87,000. The reductions will impact both brewery and white-collar positions, as the Dutch company seeks to streamline costs amid weakening beer demand.
The planned job cuts were announced alongside the company’s full-year earnings report, which revealed a 2.4% decline in beer volumes in 2025. Despite the volume decrease, Heineken reported adjusted operating profit growth of 4.4%. The company attributes this resilience to strong performance in Asian and African markets, where sales are increasing, offsetting declines in Europe and North America.
According to Heineken’s Chief Financial Officer, Harold van den Broek, the restructuring is partly driven by the need to achieve €400 to €500 million (approximately $476 million to $600 million) in annual cost savings. The company intends to leverage artificial intelligence to improve productivity and efficiency as part of this effort. Van den Broek stated the job reductions represent the “first operationalization of that debt commitment,” referring to the savings target.
The cuts will be concentrated in markets with limited growth prospects, particularly Europe. Declining beer consumption in the region is attributed to a combination of cultural shifts – with younger generations drinking less beer – and economic pressures, such as the rising cost of living. This trend is not unique to Heineken. other major brewers, including Carlsberg, are also considering workforce reductions or reorganizations.
The move comes as the global beer market faces increasing headwinds. While Heineken’s premium brands continue to perform well, overall demand is softening in key regions. The company is aiming for operating profit growth in the range of 2% to 6% in 2026, a target UBS analysts described as “in line with buyside expectations and consistent with peer Carlsberg, and prudent in light of a new incoming [CEO].”
Heineken’s stock price rose 3.4% following the earnings announcement and is up nearly 7% year-to-date, suggesting investor confidence in the company’s long-term strategy despite the short-term challenges. The company intends to reinvest the savings generated from the job cuts into growth initiatives and its premium brand portfolio.
The company’s outgoing CEO, Dolf van den Brink, characterized the results as “well-balanced” despite “challenging market circumstances.” He emphasized that productivity improvements have been a long-standing priority for Heineken, and the current restructuring is a continuation of that focus.
The planned closures of breweries and merging of operations are intended to optimize Heineken’s production network and reduce overhead costs. The company did not specify which facilities would be affected, but indicated that the decisions would be made based on a careful assessment of market conditions and operational efficiency.
The situation highlights a broader trend within the consumer staples sector, where companies are increasingly turning to cost-cutting measures and automation to navigate a challenging economic environment. The impact of these job cuts on local economies and the brewing industry remains to be seen, but Heineken’s actions signal a significant shift in strategy as it adapts to evolving consumer preferences and market dynamics.
The company’s focus on premium brands is a key element of its strategy to maintain profitability in a competitive market. By investing in higher-margin products, Heineken hopes to offset the decline in volume sales and continue to deliver value to shareholders. This approach is consistent with industry trends, as consumers increasingly seek out premium and craft beer options.
While Heineken’s performance in Asia and Africa provides a bright spot, the company acknowledges that the European market will remain a key challenge in the coming years. The combination of economic uncertainty, changing consumer tastes, and increased competition will require Heineken to remain agile and innovative in order to maintain its market position.
