Originally published July 27, 2023 8:05 am PDT
Facing a downturn in sales of its Bud Light beer, Anheuser-Busch InBev, the global brewing titan, has announced a series of layoffs in its United States offices.
While the cuts represent less than 2% of the brewer’s approximately 18,000 U.S.-based workforce, they signal a significant restructuring in the corporate offices, according to a report from The Wall Street Journal (WSJ).
Notably, the layoffs will exclude roles that directly impact production such as those within the breweries and warehouses, according to the company.
Brendan Whitworth, Chief Executive of Anheuser-Busch, shared his perspective in a statement, stating: “While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success.”
He claimed that the organizational changes would allow the company to concentrate on its strengths, namely “brewing great beer for everyone.”
The restructuring has resulted in the elimination of various roles within the corporate and marketing departments across their primary U.S. offices, including those based in St. Louis, New York, and Los Angeles.
This decision comes after the Bud Light brand experienced a major sales downturn beginning in April.
This decline was, in part, due to controversy sparked by a promotional campaign with transgender influencer Dylan Mulvaney.
Adding to the brewer’s woes, its Bud Light was recently overtaken by Modelo Especial, a Mexican brand, as the top-selling beer in the United States, WSJ notes.
AB InBev is expected to share its latest quarterly financial results in the coming week, where it will provide further details regarding the restructuring and its impact on the company’s bottom line.
In a recent Twitter post, Florida Governor Ron DeSantis (R) called for an investigation into Anheuser-Busch’s choice to “put ideology ahead of returns” and intends to file a lawsuit against the company.
Fov. DeSantis claims that its board of directors neglected responsibilities to shareholders.
“It appears to me that AB InBev may have breached legal duties owed to its shareholders and that a shareholder action may be both appropriate and necessary,” DeSantis stated in a letter.
