Heineken Spain to make collective redundancy regulations

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Heineken Spain
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The Dutch beer producer Heineken has presented a reorganisation plan with which the company wants to save €2billion by 2023. Heineken Spain has already informed the unions that it will initiate a collective dismissal scheme. 

Dutch beer multinational is cutting 8,000 jobs worldwide 

After dramatic Heineken turnover figures in 2020, 8,000 jobs will disappear worldwide. By the end of this first quarter, the multinational wants to have reduced personnel costs at its head offices by 20%. It is not yet known in which countries and within which sectors of the company the most redundancies will occur.

The number of lost jobs in Spain still unclear 

Heineken Spain has confirmed that they too will lose jobs and that labour authorities and trade unions have already been notified. “The legal process, which started with the composition of the negotiating table, must proceed with respect and responsibility and in good consultation with each other. Therefore, no further information can be provided at this time,” Heineken Spain said in an official message. It also stated that the company must adapt quickly to a market changed by the pandemic. “We are working hard to ensure that this process has as little impact as possible for our employees,” the report said. 

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Produce more efficiently 

With the reorganisation, Heineken wants to increase production efficiency, optimise the logistics process and revise the commercial plan.  This is in a bid to increase turnover and reduce personnel costs. This new strategy is the result of a net loss of €204million and a decrease in turnover of 11.3% (almost €23.8billion) in 2020. Beer sales in the European market decreased by 8.1%. 

In Spain, this was mainly due to the closed bars and restaurants. And as a result, Heineken beer turnover fell by around 15%.  Furthermore, in the last quarter of 2020, even reached 20%. In 2020, between 30-40% less beer was sold to the catering industry in Spain. However, home consumption increased significantly. Despite the pandemic, turnover of Heineken premium beers also grew in the past year. 

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