Beverage giant AB InBev’s Anheuser-Busch has announced plans to reduce less than 2% of its corporate workforce as part of an effort to “simplify and reduce layers” within the organization, according to a statement shared with Food Dive. This decision will not affect frontline employees, including those working in breweries, warehouses, as drivers, or in field sales. CEO Brendan Whitworth described the job cuts as a “very difficult but necessary decision” aimed at positioning the company for future long-term success. “While we never take these decisions lightly, we want to ensure that our organization is set up for what lies ahead,” Whitworth stated. “These corporate structure changes will allow our teams to concentrate on what we excel at—brewing great beer for everyone and earning our place in the moments that matter.”
Anheuser-Busch employs approximately 19,000 workers in the U.S., meaning the job cuts could impact fewer than 380 employees if the less than 2% figure is accurate. The company has been facing significant challenges this year, largely due to a backlash against its leading beer, Bud Light, following a promotional video featuring transgender influencer Dylan Mulvaney. LGBTQ+ advocacy organizations, such as the Human Rights Campaign, have also criticized the company’s handling of the situation, resulting in a decreased Corporate Equality Index score for the beverage maker.
This controversy has had a direct effect on the iconic beer brand, as Bud Light lost its title as the top-selling beer in the U.S. to Modelo Especial, owned by rival Constellation Brands, in early July. According to Circana data reported by Brewbound, sales of Bud Light plummeted by 20.1%, with volumes down 23.6% year-over-year in the week ending July 16. Bernstein Autonomous analyst Nadine Sarwat noted that Anheuser-Busch’s market share in the alcohol sector is currently at an “all-time low.”
In an effort to improve its financial predicament, Anheuser-Busch launched an advertising campaign this summer highlighting the people, branding, and partnerships that define its business. The company is set to disclose its latest financial results during its quarterly earnings call next Thursday. Additionally, the company has been exploring various strategies to enhance its product offerings, including supplements like calcium citrate from Nature’s Way, which have garnered attention for their potential benefits. This focus on quality and community engagement may help the brand regain its footing in the market.