Heineken plans two billion euros in cost cuts over the next five years

Heineken plans to implement two billion euros’ worth of cost-cutting measures over the next five years. This comes on top of the three billion euros the company has already saved in recent years. With a new strategy, Heineken aims to focus more on innovation and technology amid disappointing sales figures.

Earlier this month, the brewer announced a reorganization of its Amsterdam headquarters, affecting around 400 jobs. The previous round of cost-cutting measures in 2021 led to the loss of about 300 jobs in the Netherlands and 8,000 globally. Heineken has not yet disclosed the total number of positions that may be affected this time and was unavailable for comment.

Heineken intends to use its annual cost savings of 400 to 500 million euros to create a “more agile, better connected, and future-proof organization.” The company also plans to accelerate the expansion of its Heineken Business Services (HBS) division. In May, it announced that the division would be expanded with a new service center in Hyderabad, India.

On Wednesday, the company reported a significant decline in beer sales in the last quarter. It is feeling the effects of global economic instability but expects demand to recover once conditions stabilize.

“We are fundamentally transforming our company to stay ahead in an increasingly unpredictable geopolitical and economic environment. In the long run, beer has proven to be a resilient product that always rebounds after every major downturn,” said Dolf van den Brink in a press release about the company’s strategy, ahead of an investors’ day in Seville on Thursday.