In a move aimed at streamlining its operations and adapting to changing market dynamics, Anheuser-Busch, the world’s largest brewer, revealed its decision to lay off positions across its U.S. corporate staff. The restructuring, announced by the company spokesperson and quoted by CNN, is intended to simplify and reduce organisational layers to position the company for future long-term success. However, the layoffs will not affect frontline staff, including brewery and warehouse workers, drivers, and field sales personnel.
Anheuser-Busch clarified that the job eliminations would account for ‘less than 2 per cent’ of its U.S. employee population, which currently stands at over 19,000 nationwide. Based on this figure, approximately 380 positions are expected to be affected by the restructuring.
The move comes after recent market shifts that have presented challenges for the American beer giant. In a surprising turn of events, Mexican lager Modelo Especial, brewed by Constellation Brands, surpassed Bud Light, brewed by Anheuser-Busch, as the top-selling beer in the United States in May. For over two decades, Bud Light dominated the sales charts until a controversy involving transgender influencer Dylan Mulvaney hit the brand’s reputation.
The controversy erupted when Mulvaney posted an Instagram photo featuring a custom can of Bud Light sent to her by the company. The post triggered a backlash from some conservative quarters, while LGBTQ+ advocates criticized Anheuser-Busch’s response to the situation, considering it insufficient. As a result, Bud Light’s sales experienced a significant decline in the U.S. market.
In light of these challenges, Anheuser-Busch CEO Brendan Whitworth acknowledged the difficulty of eliminating corporate positions. However, he emphasized that it was necessary to ensure the company’s continued success in the long run.
Understanding industry trends
The job cuts are part of the broader effort by Anheuser-Busch InBev, the parent company, to reposition its operations and adapt to the evolving consumer preferences and industry trends. The company’s diverse portfolio includes iconic brands like Budweiser and Bud Light, among others, which continue to enjoy strong support from beer enthusiasts worldwide.
Anheuser-Busch’s recent challenges in the U.S. market have coincided with a broader trend of consumers increasingly favouring Mexican beers and spirits. The rise in popularity of Modelo Especial further amplified the competition, leading to a shift in the top-selling beer brand in the country. As a result, the company has been re-evaluating its strategies to address this changing landscape effectively.
(With Inputs from Agencies)
For all the latest business News Click Here
