Beer giant Heineken is axing about 6,000 jobs, equating to about 7% of its 87,000-strong global workforce in response to declining beer sales.
The Dutch firm, whose beers include Amstel, Birra Moretti and Tiger as well as Heineken, also warned of weaker profit growth this year.
Chief executive Dolf van den Brink, who is leaving in May, said: “Our first priority is to accelerate growth, funded by stepped up productivity and operating model changes that will involve a significant cost intervention over the next two years.”
The board is now seeking a new boss as sales are hit by a combination of rising costs and subdued demand for beer among health-conscious consumers.
Heineken, whose UK operations are headquartered in St Andrew Square, Edinburgh, said it is seeking annual savings of up to €500m after announcing that volumes declined 1.2% in 2025.
The largest decrease was registered in Europe (down 3.4%) followed by the Americas (down 2.8%).
Rival Carlsberg is cutting jobs while other beer and spirits makers are seeking cost savings while also selling assets.
Former Tesco boss Sir Dave Lewis has been hired by Johnnie Walker and Guinness owner Diageo to stem a fall in sales and has already announced asset sales.
AJ Bell investment director Russ Mould said: “Sadly, this is becoming a trend across the business world globally, as many companies contend with rising costs and slowing sales growth.
“Heineken’s investors have welcomed the job cut guidance, pushing up the share price on news that more costs will be coming out of the business.
“All this means whoever becomes Heineken’s new CEO will walk into the top job with many difficult decisions having already been made. There is no news on who will replace Dolf van den Brink when he leaves in May, but the pressure is on to find a new leader fast, and one who can breathe new life into the beer giant.”
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