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Heineken to cut office costs as Covid-19 surge clouds outlook
[NETHERLANDS] Heineken, the world's second-largest brewer, plans to cut personnel expenses by 20 per cent at headquarters and regional offices as Covid-19's resurgence clouds its outlook.
Although beer volume fell less than analysts expected in the third quarter - 1.9 per cent on an organic basis, compared with a 6.6 per cent consensus - volatility due to the pandemic makes it impossible to provide a specific forecast, the company said.
After holding off on job cuts through 2020, Heineken is moving to streamline its office functions from the beginning of next year.
The better-than-expected sales performance was driven by Heineken's namesake brand, which was been a marketing focus in recent years and is widely available in supermarkets as bars in some countries continue to face restrictions.
Danish brewer Carlsberg on Tuesday lifted its forecast for a second time. Distiller Campari also reported strong results. Beer leader Anheuser-Busch InBev is set to report earnings later this week.
Heineken shares have lost 16 per cent this year.