The Dutch beer company Heineken closed 2020 with losses of 204 million euros, compared to net profit of 2,166 million euros in 2019. The company will carry out a global adjustment of about 8,000 jobs, 9% of its global workforce. It will also affect workers in Spain, where the multinational has 1,590 employees.
Company sources in Spain told Europa Press that they have presented “before the union representatives and the labor authorities their intention to initiate a collective dismissal procedure.”
“The legal process initiated with the constitution of the negotiating table requires acting with the utmost responsibility and respect, in a good atmosphere of dialogue, so we cannot provide more information for the moment,” they added.
In this sense, the brewery pointed out that its markets and businesses are being significantly affected by the pandemic, which is accelerating trends and causing changes in consumer demands, forcing “to act quickly and responsibly in order to to guarantee a sustainable future and contribute to economic reactivation. ”
“That is why we are reviewing our strategy and our organization to adapt quickly and flexibly to a different, smaller and constantly changing market,” they explained. “We face this new stage with the seriousness that it demands and we have always shown, 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.”
The measure is part of the productivity improvement program launched by Heineken at the end of 2020. Globally, Heineken estimates a reduction of its employee base of around 8,000 people, which will imply a restructuring cost of around 420 million euros and will allow direct savings in personnel costs of around 350 million euros. The timing of the restructuring will vary depending on the circumstances of each of its local operations, including a 20% reduction in personnel costs at the company’s headquarters in the first quarter of 2021.
“The impact of the pandemic on our business was amplified by our commercial and geographic exposure,” said Dolf van den Brink, Heineken President and CEO.
Heineken’s net income for the year as a whole amounted to 19,724 million euros, 17.4% below the figure recorded in 2019, although in organic data the decrease was 11.9% per year, including a decrease in figures absolute 17.4% (-9.5% organic) of sales in Africa, the Middle East and Eastern Europe, up to 2,782 million euros.
In America, the brewery’s net revenue decreased in 2020 by 14.9% (-2.9% organic), to 6,319 million euros, while in Europe, Heineken’s net turnover fell by 18.8% , up to 8,631 million.
In Spain, the company recorded a double-digit drop in beer volume, with a worse performance in the second and fourth quarters. “The Covid had a more significant impact on the hospitality channel with a volume loss between 30% and 40%”, while it increased in double-digit food supply.